RIBA(INTEREST) IN THE QURAN

The prohibition of riba (interest) appears in the Qur’an in four different revelations; In the first revelation, Allah (SW) says. “That which you give in riba for increase through the property of (other) people will have no increase with Allah. But that which you give for charity, seeking the Countenance of Allah (will increase). It is these who will get a recompense multiplied.” (Al Qur’an 30:39)

Sheikh Abul-ala-Maududi in his commentary on the verse explains, “Commentators of the Qur’ an have given two interpretations to this verse. One section of them says: Here riba, does not mean the interest which is forbidden by the Shari ‘ah, but it means the gift or the present which is given with the intention that the recipient will return it redoubled, or will perform some useful service for the donor, or his becoming prosperous will be beneficial for the donor himself. This is the view of Ibn ‘Abbas, Mujahid, Dahhak, Qatadah, ‘Ikrimah, Muhammad bin Ka ‘b al-Qurzi and Sha ‘bi. Probably this comment has been made by these scholars for the reason that in this verse the only consequence mentioned of the act is that in the sight of Allah such wealth will not increase at all; if, however, it had meant the interest forbidden by the Shari ‘ah, it would have been positively said that it will be severly punished by Allah. The other group differs from this and says that it means the same well-known riba which has been forbidden by the Shari ‘ah….

In our opinion also this second interpretation is correct, for the argument in favour of the first interpretation is not enough for discarding the well known meaning of the word riba. In the period when Surah Ar-Rum was sent down, interest had not been forbidden yet. The prohibition was made several years afterwards. The way of the Qur ‘an is that it first prepares the minds for the thing that it has to prohibit at a later stage. About wine also the only thing said in the beginning was that it was not pure food. (An-Nahl:67). Then in Al-Baqarah:219, it was said that the harm of its sin is greater that its benefit. Then it was enjoined that the Prayer should not be offered in the state of intoxication.(An-Nisa’:43). Then, finally, it was prohibited totally. Similarly, about interest here it has been only said that it does increase the wealth, but the real increase is caused by Zakat . After this, the compound interest was forbidden (Al-Imran: 130); and finally interest itself was made absolutely unlawful. (Al-Baqarah:275)”

Surah Ar-Rum, verse 39 is the first verse revealed in the Qur ‘an that discourages the giving of riba and is reiterated in Surah Al-Baqarah:276. It not only condemns riba but touches on the relationship between mankind and his Creator, that all activities undertaken by the believer should revolve round the attainment of Allah’s pleasure, goodwill, support, approval e.t.c. (…but that which you give in charity, seeking the Countenance of Allah)

The Qur ‘an asks believers to go beyond avoiding what is wrong (the giving of riba); but to spend out of their own wealth, talents and opportunities in the service of those who need them.

In the second revelation, Allah (SW) says, “And for their taking riba even though it was forbidden for them, and their wrongful appropriation of other people’s property, We have prepared for those among them a grievous punishment” (Al Quran 4:161) The second revelation on prohibition of interest in the Holy Qur’an (Surah al-Nisa’, verse 161) refers to the people of the Book (Jews and Christians) implying that the prohibition of interest by the Qur’an does not mean that the Qur’an is the first scripture to forbid the dealing in interest. This is evident from the following quotations from the Bible.

“If you lend money to any of my people who are poor, do not act like a money lender and require him to pay interest.” (GNB, p 82 Exodus 22:25)

“When you lend money or food or anything else to a fellow Israelite, do not charge interest. You may charge interest on what you lend to a foreigner, but not on what you lend to a fellow -Israelite. Obey this rule and the Lord your God will bless every thing you do in the land that you are going to occupy.” (GNB, p197 Deuteronomy 23: 19-20)

“Do not charge them any interest, but obey God and let your fellow - Israelites live near you. Do not make them pay interest on the money you lend them and do not make a profit on the food you sell them.” (GNB p 129 Leviticus 25: 36-37)

The verses on the prohibition of interest are concentrated in the Old Testament. Mine is not to offer any interpretation to the above verses, but observe that the Biblical law forbids the taking of interest between Israelites and Israelites. It does not impose any limit in dealings between Israelites and Gentiles.

In the third revelation, Allah(SW) says: “O you who believe, devour not riba doubled and multiplied but fear Allah that you may really proper” (Al Qur’an,3:130)

This verse is a distinct command to keep away from compound interest if one desired his or her welfare( in the comprehensible Islamic sense).

In the fourth revelation, Allah(S.W) concludes, “Those who eat Riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say: ‘ Trading is only like Riba (usury),” whereas Allah has permitted trading and forbidden Riba (usury). So whoever receives an admonition from his Lord and stops eating Riba (usury) shall not be punished for the past; his case is for Allah (to judge); but whoever returns (to Riba (usury)), such are the dwellers of the Fire- they will abide therein.

Allah will destroy Riba (usury) and will give increase fro Sadaqaat (deeds of charity, alms) And Allah like not the disbelievers, sinners.

Truly, those who believe, and do deeds of righteousness, and perform As-Salaat (Iqamat-as-Salat) and give Zakat, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve.

O you who believe! Be afraid of Allah and give up what remains (due to you) from Riba (usury) (from now onward), if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger, but if you repent, you shall have our capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).

And if the debtor is in hard time (has no money), than grant him time till it is easy for him to repay; but if you remit it by way of charity that is better for you if you did but know. And be afraid of the Day when you shall be brought back to Allah. Then every person shall be paid what he earned, and they shall not be dealt with unjustly. (Al-Qur’an 2: 275-281)

The Arabs use the word majnun (possessed by jinn) to characterize the insane. The Qur’an use the same expression about those who take interest. In his commentary, Sayyid Abul A’la Maududu explains, “Just as an insane person, unconstrained by ordinary reason, resorts to all kinds of immoderate acts, so does one who takes interest. He pursues his craze for money as if he were insane. He is heedless of the fact that interest cuts at the very root of human love, human brotherhood and fellow-feeling, and undermines the welfare and happiness of human society, and that his enrichment is at the expense of the well being of many other human beings.

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