Q659 :When, how and why was usury made forbidden?
How is it possible to survive in today’s netmercial world where banking
plays an important role without having to deal in interest which is
charged by banks?
A659 : At the time of the Prophet Muhammad (peace be
upon him) usury, or riba as it is called in Arabic, was widely
practiced. It was frowned upon by Islam, without issuing a definitive
ruling, for most of the time during which Qur’anic revelations were
being sent down to the Prophet. However, there were numerous hints and
implicit warnings in the Makkan Qur’anic revelations and the Hadith
which suggested to the Muslim netmunity at an early stage that usury
was not viewed favorably in Islam. Later on, a firm prohibition was
stated clearly in the Qur’an and in the Hadith which was clear to
everyone. But the matter did not end at that. Clearer and sterner
prohibitions were still to nete. When you look at the relevant
statements in the Hadith and the Qur’an, you are bound to conclude that
usury is the single most clearly and categorically forbidden deed,
second only to associating partners with Allah. I will give you a few
of the relative statements. “Believers do not devour usury in doubles
and multiples, and fear Allah so that you may prosper.” (3;130) “Allah
has made trade lawful and usury forbidden.” (2;275) “God curses the
one who devours usury, the one who pays it, the one who writes the
contract between them, and the two who witness the contract.” (an
authentic Hadith) “Believers, fear Allah and abandon all the remains
of usury, if you be true believers. If you do not, then be notified
that a war is declared on you by God and His messenger. If you repent,
you may have only your principal amounts, wronging no one and without
being wronged by anyone.” (2;278-9) You cannot fail to notice the
prohibition is total and given immediate practical effect by the
Prophet, starting with outstanding usurious transactions belonging to
his own uncle. Moreover, the prohibition applies to everything that
relates to usury, even the writing and the witnessing of its
transaction. The Prophet even curses those who are willing to give such
assistance, even though they themselves are not parties to the
transaction. This is because the Prophet wants to give us a sense of
the seriousness of this matter. But the gravity of prohibition is best
seen by the Qur’anic statement which declares war on those who continue
to devour usury. Needless to say, such a war has only one winner. The
reader also asks why was usury forbidden. I think the answer is clear
to everyone. Usury is a system which seeks to exploit the need of the
less fortunate in order to give unearned profit to those who have
plenty. It creates a society in which injustice is perpetuated. In
former times, the picture of the usurer was one which met with
universal disapproval. That is because the usurer was one who got rich
as a result of the financial ruin of others. In order to get wealthy,
he sent many victims down the road to utter ruin and despair. Islam is
a religion of justice and, therefore, it could not approve of the
injustice associated with usury. It would not have been a religion
revealed by God, the All Merciful, the Compassionate, if it did not
outlaw usury altogether. I understand fully the point you are trying
to make when you ask how is it possible to survive in today’s business
world without ever receiving interest or paying it. What they do [to
survive] is to limit their operations to realistic means. They do not
borrow more than they can easily repay without having to add interest
to it. They do not seek excessive wealth. They only want to lead a
decent living. That is certainly possible, and benetes even easier if
more and more people are willing to do the same. The advice I have just
given you applies to individuals. But the Muslim netmunity as a whole
is required to devise a system for business which has nothing to do
with usury. When they do, they ensure social justice and they earn
something much greater than that, namely, Allah’s pleasure. People do
not have to be millionaires in order to lead a decent netfortable life,
but with Allah’s pleasure, they are much richer than all the
millionaires in this world put together.
Our Dialogue ( Source : Arab News – Jeddah )