Why is Interest Declared Haraam in Islam? – The Responsibility of Commanding with Good and Forbidding from Evil – Part Twenty Seven

After Allah Ta‘ala created the entire world, He sent Nabi Aadam (‘alaihis salaam) to the world as His vicegerent to administrate the affairs of the world. Being appointed as the vicegerent of Allah Ta‘ala in the world demanded that Nabi Aadam (‘alaihis salaam) manage the affairs of the world according to the divine commands of Allah Ta‘ala.

Among the commands which Allah Ta‘ala gave Nabi Aadam (‘alaihis salaam) and all the other Ambiyaa (‘alaihimus salaam) was to uphold justice and honesty in their lives at all times. Hence, we find that the Ambiyaa (‘alaihimus salaam) were embodiments of truthfulness, justice and honesty to the highest level, and they commanded their ummats to uphold these qualities in their lives as well.

In the Qur’aan Majeed, Allah Ta‘ala says, “O you who believe! Stand up firmly for Allah as just witnesses, and let not the enmity of a people cause you to deviate from (the path of) justice. Remain just (at all times), that is closer to taqwa (piety and righteousness), and fear Allah, Allah is All-Aware of what you do.” (Suraah Maa’idah v. 8)

From this aayah, we understand that committing injustice and oppression has been severely condemned and criticized in Islam to the highest degree, and a believer is not permitted, at any time, to deal unjustly with any person – not even with a disbeliever who is the enemy of Allah Ta‘ala.

On account of riba (interest) being among the most heinous and severe forms of injustice and oppression, Islam has openly and unequivocally declared it to be forbidden and Haraam. In the Qur’aan Majeed, Allah Ta‘ala states: “And Allah has permitted sale and prohibited riba (interest).” (Surah Baqarah v. 275)

During the time of Rasulullah (sallallahu ‘alaihi wasallam), the Arabs would give loans on interest. If the debtor could not pay on time, then the interest amount would go on increasing. In regard to this evil and inhumane practice, Allah Ta‘ala revealed the following verse: “O you who believe, do not consume interest multiplied manifold and fear Allah so that you be successful. And fear the fire (of Jahannum) which has been prepared for the disbelievers.” (Surah Aal Imraan v. 130)

Viewing the Western Economic System of Today’s Times

When we view the Western economic system of the kuffaar in todays’ times, we find that it also revolves around riba dealings and transactions, as was the practice of the Arabs in the days of ignorance. In stark contrast to this evil and oppressive riba-system of the West is the beautiful way of Islam.

Islam encourages one to show kindness to the creation and assist people who are in financial difficulty and need by giving them interest-free loans. When a person assists someone with an interest-free loan, then one receives immense rewards from Allah Ta‘ala.

However, when a person charges the debtor interest upon the loan, then he has not shown him any kindness, but rather he is oppressing him by putting him into further difficulty, as he has to repay the loan amount as well as pay the additional interest-amount he is being charged. At times, the interest amount goes on increasing until it even exceeds the initial loan amount due to the person not being able to pay on time. In reality, this is breaking the command of Allah Ta‘ala and taking undue advantage of the poor man by exploiting him at the time when he is in desperation and poverty.

There are so many warnings mentioned in the Qur’aan Majeed and Mubaarak Ahaadith regarding the evil of riba and its destructive consequences that there is perhaps no other sin regarding which so many warnings and serious admonishments have been revealed.

The Severe Warnings that have been Revealed in the Qur’aan regarding Riba

In the Qur’aan Majeed, Allah Ta‘ala mentions that on the Day of Qiyaamah, the one who consumed interest will wake up in such a state of bewilderment and shock that it will seem as if he has been affected by the evil touch of Shaitaan. Allah Ta‘ala says: “Those who consumed interest will rise (on the Day of Qiyaamah) like the one who has been afflicted by the evil touch of Shaitaan.” (Surah Baqarah v. 275)

In Surah Aal Imraan, Allah Ta‘ala mentioned that those who get involved in riba dealings and transactions, Allah Ta‘ala has prepared for them a severe punishment in Jahannum, similar to the punishment prepared for the disbelievers. Allah Ta‘ala says, “O you who believe, do not consume interest multiplied manifold and fear Allah so that you be successful. And fear the fire (of Jahannum) which has been prepared for the disbelievers.” (Surah Aal Imraan v. 130)

Commenting on this aayah, Imaam Abu Hanifah (rahimahullah) said, “This is the most fearsome aayah in the entire Qur’aan Majeed, for Allah Ta‘ala has warned the believers of the fire of Jahannum, which has been prepared for the disbelievers, if they do not refrain from the haraam of interest.”  (Madaarik Tanzeel 1/282)

Allah Ta‘ala and His Rasul (sallallahu ‘alaihi wasallam) Declaring War Against Those Involved in Riba

The sin of riba is so detrimental and destructive that Allah Ta‘ala declares war against its perpetrators. The Ulama explain that in the entire Qur’aan Majeed, there is no other sin regarding which Allah Ta‘ala declares war against the perpetrators besides the sin of riba.  Allah Ta‘ala says: “If you do not do so (desist from dealing in interest) then be prepared to wage war against Allah Ta‘ala and His Rasul (sallallahu ‘alaihi wasallam).” (Surah Baqarah v. 279)

Imagine – if any superpower of the world has to declare war against any individual, how worried won’t the person become? Here, in this verse, Allah Ta‘ala, the King of all kings and the Creator of the universe, Himself is making an open of declaration of war against those who get involved in the heinous sin of riba! Which person can ever withstand the punishment of Allah Ta‘ala?

In the Hadith Shareef, Rasulullah (sallallahu ‘alaihi wasallam) has warned that those involved in riba, and all those who support them, are under the divine curse of Allah Ta‘ala. Hazrat Jaabir (radhiyallahu ‘anhu) reported that Rasulullah (sallallahu ‘alaihi wasallam) cursed the one who consumes interest, pays interest, the scribe for the interest transaction and the witness to such a deal. Rasulullah (sallallahu ‘alaihi wasallam) said that all are equal in the sin (of riba). (Saheeh Muslim #1598)

When those who are involved in interest-dealings (whether through taking interest-bearing loans from the bank, or through taking out insurance policies, or though getting involved in interest transactions, etc.) are perpetually under divine curse, and are constantly at war with Allah Ta‘ala and His Rasul (sallallahu ‘alaihi wasallam), then how can they ever enjoy happiness and success? It is witnessed that such people are faced with various problems and difficulties in their lives. At times, they are faced with marital problems with their wives, domestic problems with their children, and social problems in society. They do not know from where all these problems have come upon them – whereas the reality of the situation is that all these problems are as a result of them breaking the commands of Allah Ta‘ala through getting involved in the evil sin of riba.

Insha Allah Ta‘ala, in the next part, we will explain the severe admonishments and warnings that are reported in the Hadith for those who get involved in the grave sin of riba.