The Quran strictly forbids riba, or interest, viewing it as exploitative and unjust, equating it to a war against God and His Messenger, and differentiating it from permissible trade. Key verses, especially in Surah Al-Baqarah (2:275-279), command believers to abandon interest, emphasizing that Allah permits trade but forbids riba, allowing only the principal amount if one repents from interest-based loans, while promoting charity and ethical finance instead.
Interest is deemed riba, or an unjust, exploitative gain, and such practice is forbidden under Islamic law. In Islamic finance, riba refers to interest charged on loans or deposits. Religious practice forbids riba, even at low interest rates, as both illegal and unethical or usurious.
2:277. Allah abolishes interest and causes charity to increase. And Allah loves not anyone who is a confirmed disbeliever and an arch-sinner.
Riba is mentioned and condemned in several different verses in the Qur'an (3:130, 4:161, 30:39, and the commonly referenced 2:275-2:280). It is also mentioned in many hadith (reports of the life of Muhammad). While Muslims agree that riba is prohibited, not all agree on what precisely it is (its definition).
Surah 57, Verse 3 (Al-Hadid) of the Quran describes Allah as the First and the Last, the Outward (Manifest) and the Inward (Hidden), and the Knower of all things, emphasizing His eternal nature, encompassing presence, and complete knowledge. It highlights His pre-eternity and everlastingness, His manifestation through creation, His hidden essence beyond human perception, and His omniscience, affirming that nothing precedes Him and nothing is hidden from Him.
19. These two opponents (believers and disbelievers) dispute with each other about their Lord; then as for those who disbelieve, garments of fire will be cut out for them, boiling water will be poured down over their heads. 20. With it will melt or vanish away what is within their bellies, as well as (their) skins.
(7:157) [To-day this mercy is for] those who follow the ummi Prophet, 112 whom they find mentioned in the Torah and the Gospel with them. He enjoins upon them what is good and forbids them what is evil.
A shariah-compliant current account does not pay interest. The bank gives you access to your money and uses your deposit as an interest-free loan, known as a 'qard', to help finance its operations. If you open a savings account, your bank will invest the money you deposit – but not in anything shariah says is harmful.
Quran 47:4 (Surah Muhammad), often called the "Verse of the Sword," instructs believers in battle to strike the necks of disbelievers until subdued, then bind them, and later release them either by grace or ransom until the war ends, explaining this is a test from Allah, who could have won without them, and assures that martyrs in His cause have their deeds preserved.
Islamic rules forbid earning interest from savings and charging interest on loans and mortgages. Under Islam, being in debt is not encouraged.
Interest is exploitative (Argument 1)
Standardly, the argument against interest is that it is exploitative. A rich person is one who has lots of money, and he is in a position to lend. A poor person has little money and is in need of a loan.
What is difference between riba and interest? There is no difference. 'Riba' is the Arabic word which is used in an Islamic context. As with all Islamic affairs, we recommend consulting an Islamic expert on finance about any concerns or questions you may have.
Quran verse 93:4, from Surah Ad-Duha, states, "And the next life is certainly far better for you than this one," a message of hope and divine reassurance that the Hereafter holds greater reward and peace than worldly life, encouraging patience and trust in Allah's plan, especially during difficult times.
The 7 major sins in Islam, often called the "seven great destructive sins," are derived from a Hadith and include: associating partners with Allah (Shirk), practicing magic, unjustly killing a soul, consuming usury (riba), eating an orphan's wealth, fleeing from battle, and slandering chaste, believing women. Avoiding these sins requires sincere repentance and turning to Allah.
Bible. The Old Testament "condemns the practice of charging interest on a poor person because a loan should be an act of compassion and taking care of one's neighbor"; it teaches that "making a profit off a loan from a poor person is exploiting that person (Exodus 22:25–27)."
Usury is interest that a lender charges a borrower at a rate above the lawful ceiling on such charges; a contract upon the loan of money with an illegally high interest rate as a condition of the loan. Usury is also the act of making a loan at such an interest rate; making a loan at a usurious rate.
One such powerful verse is Sura Al-Hujurat (49:13), which states: “O mankind! Indeed, We created you from a male and a female and made you into nations and tribes that you may know one another. Indeed, the most noble of you in the sight of Allah is the most righteous of you.
English Translation
“And surely, Hell is the promised place for them all. And lo! for all such, hell will be the promised place. And surely Hell will be indeed their promised (abode) all together.
Man is a creature of haste: soon (enough) will I show you My Signs; then ye will not ask Me to hasten them! Man is hasty by nature. I shall certainly show you My Signs. Do not ask Me to be hasty.
Paying interest is otherwise known as Riba, and this is considered a major sin. The principle of paying or charging interest goes against Islamic law, which forbids Muslims from lending or receiving money with the expectation of benefiting.
Remove all interest-based earnings. Dispose of the money in ethical, non-personal avenues (e.g., public welfare, support for the needy). Disposing of interest money is not charity; it is an act of financial cleansing and does not replace Zakat or Sadaqah.
For Muslim Americans who seek to align their home financing with Islamic principles, Halal or Islamic mortgages offer a faith-based alternative to conventional loans—one that avoids ribâ (interest), which is prohibited in Islam.
(49:15) Indeed the ones possessed of true faith are those who believed in Allah and His Messenger and then they did not entertain any doubt and strove hard in the Way of Allah with their lives and their possessions. These are the truthful ones.
MID-WEEK REMINDER: “So, surely with hardship comes ease. Surely with ˹that˺ hardship comes ˹more˺ ease.” - Holy Quran - Surah Ash-Sharh (94:5-6) Masha Allah only he can bring ease to people.
And say to the believing women that they must lower their gazes - 24:31. In the initial part of this long verse the injunction is the same which has been enjoined on men-folk in the preceding verse, that is, keep the eyes down or turn away the eyes.