RIBA OR INTEREST

If you lend a person Rs. 100/- and you demand Rs. 110/- in return, to cite an example, this surplus is called Riba or interest and this transaction is a transaction of Riba and interest. Undertaking a transaction that involves Riba or interest is a Haraam transaction. It is so grave that Allah Ta’ala has called it declaring war against Allah and His Rasul (Sallallaahu Alaihi Wasallam). The consequence of undertaking a transaction that involves interest is much more/graver than the consequence of declaring war against a superpower. Doing a transaction that involves interest or consuming interest are among the most grave sins. It is so grave that Rasulullah (Sallallaahu Alaihi Wasallam) has cursed the one who consumes interest and all those who contribute and participate in such a transaction such as the witness, the one who takes interest, the one who gives interest and the one who writes the contract among others, are all cursed by Rasulullah (Sallallaahu Alaihi Wasallam). According to a Hadith, interest has 72 degrees of sins. The lowest degree is equivalent to a person who has committed adultery with his mother.

"Loans" that people take from the bank are also transactions that involve interest as one must pay back more than the amount that one has borrowed. Therefore, one must be very careful. According to a Hadith, Rasulullah (Sallallaahu Alaihi Wasallam) said: 

''A dirham (a gold coin) of Riba that a person consumes intentionally, is a graver sin than committing Zina 36 times.''

It should be noted that consuming Riba is not only related to food. It also applies to other aspects such as buying clothes, jewellery or a vehicle or constructing a house, bathroom, toilet, wall, etc. Just as it is Haraam to consume interest money, it is also Haraam to make use of it in these ways. Just as interest is Haraam, similarly, racing games, playing lottery and pick pool are Haraam.

We must bear in mind that there is neither success nor good fortune in it. There is only misfortune in it. In Aakhirah there will definitely be misfortune. In Dunya also, there are lots of misfortune.

[English version of "Riba ou l’interet" – Al Jamiat – Vol.2 No.1]