Paying Interest in Islam: The Haraam Nature According to Quranic Verses
The concept of interest, or riba, in Islam is considered haram, a major sin explicitly forbidden by Allah. This article delves into the core reasons why paying interest is haram based on Quranic verses, traditional Islamic teachings, and the opinions of scholars.
Quranic References
The Quran provides clear guidance on the prohibition of engaging in interest transactions. According to Quran 2:278 and 2:279, these verses explicitly declare that any involvement in interest is totally haram:
Quran 2:278
“Allah deems interest as detestable, just as He deems detestable theft. And whoever among you is compelled to the transaction in interest, then there is no sin upon those who are compelled, for their hearts are in accordance with their deeds. But whosoever is willing to seek Allah’s pleasure, then for him is [the reward of] the Hereafter; and Allah is All-Knowing, All-Wise.”
Quran 2:279
“And Allah only decrees [that] good for you. And so that you may borrow to [help] one another and you may increase in Well-Doings. And [O Prophet], do You not get to know? And that Allah only prohibits interest. And that you may have fear of Allah—Allah does not desire for any of you to incur harm. And that you may take a religious debt from one another [only] in accordance with justice. And if you have a transaction with each other, then you should witness it. Thus does Allah make clear to you that you may be cautious [in fulfilling your duty to Him]. And Allah is All-Knowing, All-Wise.”
Islamic Scholars and Opinions
Islamic scholars are in consensus that any form of interest is haram. Based on the teachings of Ibn Qudaamah, any loan that necessitates repaying extra is considered haram riba.
Islamic Scholar's Statement
“Every loan in which it is stipulated that something extra be repaid is haraam and there is no difference of scholarly opinion on this point.” - Ibn Qudaamah, Al-Mughni, Vol. 6, p. 436
It is important to understand that the nature of riba remains the same even if the term is not explicitly used in the new nomenclature. The principles of riba remain the same, as seen in banking practices today. Therefore, seeking an interest-bearing loan, even through Islamic banks, is against the teachings of Islam.
Quotations from the Quran
Revealing Quranic Verses
Allah ? prohibits interest but makes charity acceptable. Both, interest and unjust appropriation of other people’s property are the major cause of unhappiness. Allah has made warnings for the people who have caused unhappiness through interest and unjust appropriation of properties. 2:276
Command to Repay Loans
Commanding believers to come out of their past mistakes and reminding them that they should abandon whatever is due to them from the interest. 2:278
War Declaration
Command to give up interest or to face a war similar to those whom made obligatory the interest regime. This law of interest and injustice is historically seen as the fundamental cause of wars in the world. Allah says this incident will help the oppressed and the pure ones. 2:279
Additional Verses
For their taking interest even though it was forbidden to them, and for their wrongful appropriation of other peoples’ property, we have prepared for those among them who reject faith a grievous penalty. 4:161
Conclusion
Paying interest is haram as stated clearly in the Quran. The scholars are unanimous in agreeing that any form of extra payment in a loan agreement is haram riba. If one wishes to avoid the sin of riba, it is essential to turn to Allah for help and seek His mercy. Financial transactions should be guided by the principles of charity and fairness.
By adhering to these prohibitions, Muslims can ensure that their financial transactions are in accordance with Islamic principles, fostering a society based on trust, honesty, and pure intentions.