Riba is the act of lending money with interest. This action is forbidden in Islam and Allah places His wrath on those who engaged in it. Why is this forbidden in Islam? This thread provides an answer.

Praise be to Allah.

Shaykh Ibn ‘Uthaymeen (may Allah have mercy on him) said:

“The ruling on riba is that it is haraam according to the Quran and Sunnah and scholarly consensus. It is classified as one of the major sins, because Allah says (interpretation of the meaning):

“but whoever returns (to riba), such are the dwellers of the Fire — they will abide therein” [al-Baqarah 2:275]

“And if you do not do it, then take a notice of war from Allah and His Messenger” [al-Baqarah 2:279]

And because the Messenger of Allah (peace and blessings of Allah be upon him) cursed the one who consumes riba, the one who pays it, the two who witness it and the one who writes it down. So it is a major sin.

There is scholarly consensus that riba is forbidden, hence whoever denies that it is forbidden although he lives in a Muslim environment is an apostate, because this is one of the obviously forbidden things on which there is consensus.

But if we say this, does that mean that the scholars are agreed on all forms of riba? The answer is no; there is a difference of opinion concerning some forms of it. This is like what we have said about zakah being obligatory according to consensus, but despite that there is no consensus on every form of it. They differed concerning the zakat on camels and oxen that are used for farming or irrigation, and they differed concerning the zakah on jewellery and the like, but in general the scholars are agreed that riba is haram and is a major sin.” (Al-Sharh al-Mumti’ ‘ala Zad al-Mustanqi’, 8/387)

The ruling on those who regard riba as permissible

Based on that, it may be said:

Whoever denies that riba is forbidden is a kafir, because the fact that it is forbidden is one of the matters indicated by the texts, and the scholars are obviously agreed that it is haram, and this is well known among the Muslims.

But if he denies that a specific form of riba is forbidden, concerning which there is a difference of opinion among the scholars or there is no consensus that it is obviously forbidden, then he is not a kafir; rather his case should be examined further. He may be a mujtahid who will be rewarded for his ijtihad, or he may be excused, or he may be an evildoer if by regarding this as permissible he is following his own whims and desires.

And Allah knows best.

Culled from IslamQA

So u expect me to me lend u money without any interest bah?

Na Una sabi o

Money wey b say if someone lend 100k from you now for lik a month or a wee...

The person is not returning the same 100k cos d money go don lose value with the rate inflation dey rise for our country so tell me why I no go add interest for me to be able to get the same value....

ok.... you are a Muslim and a bank manager someone walk up to u for a loan will u add interest yes or no

Why do banks in Saudi Arabia and the Gulf States like Dubai UAE etc charge interest?

AllahIsShit:
Why do banks in Saudi Arabia and the Gulf States like Dubai UAE etc charge interest?

lol

Na Muslims collect riba pass

nairavsdollars:
Na Muslims collect riba pass

omo werey

Collection of interest ( usery) is evil.

The bible also preached against collecting intetest on debt.

Deuteronomy 23:19-20

You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest.

Exodus 22:25

If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him.

Ezekiel 18:13
Lends at interest, and takes profit; shall he then live? He shall not live. He has done all these abominations; he shall surely die; his blood shall be upon himself.

Leviticus 25:36

Take no interest from him or profit, but fear your God, that your brother may live beside you.

Nehemiah 5:10

Moreover, I and my brothers and my servants are lending them money and grain. Let us abandon this exacting of interest.

This is a clear cut text from the both religion as seen with evidences from the scriptures instead saying something rash why not just pray for GODS mercy and forgivess while seeking to repent ,,,cos most of us are guilty of this in many ways... may the Almight guide us all aright

AllahIsShit:
Why do banks in Saudi Arabia and the Gulf States like Dubai UAE etc charge interest?

Islamic law prohibits charging
interest as well as any usury (i.e.,
lending money at exorbitant or
unlawful rates of interest). ... But Islamic
banks are still banks, which means they
also seek to make profits for their
investors.

thebosstrevor1:
Collection of interest ( usery) is evil.

The bible also preached against collecting intetest on debt.

Deuteronomy 23:19-20

You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest.

Exodus 22:25

If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him.

Ezekiel 18:13
Lends at interest, and takes profit; shall he then live? He shall not live. He has done all these abominations; he shall surely die; his blood shall be upon himself.

Leviticus 25:36

Take no interest from him or profit, but fear your God, that your brother may live beside you.

Nehemiah 5:10

Moreover, I and my brothers and my servants are lending them money and grain. Let us abandon this exacting of interest.

AllahIsShit what do u have to say?

Christians that has no law and guidance in their religion are always here to disturb us

Albert0011:
So u expect me to me lend u money without any interest bah?

Na Una sabi o

That is wickedness. Lending someone money should be as a result of Mercy. Not hoping to do business with that person problem. Islam is a religion of Mercy and that is why you don't find sorrow for someone in problem.

The banking system is secular and commercial. It is not governed by religion but by principles of economics.

Haakeem:
AllahIsShit what do u have to say?

Haakeem:
AllahIsShit what do u have to say?

he is confused and deranged folks

I already answered his question. The banking and finance sector is governed by economic theory, not the Bible.

ajumma:


he is confused and deranged folks

Albert0011:
So u expect me to me lend u money without any interest bah?

Na Una sabi o

Islamic finance refers to how businesses and individuals raise capital in accordance with Sharia, or Islamic law. It also refers to the types of investments that are permissible under this form of law. Islamic finance can be seen as a unique form of socially responsible investment. This subbranch of finance is a burgeoning field. In Islam, money borrowed are not supposed to have interest imposed to exploit the borrower but rather be borrowed based on mutual consent of equally sharing profit and loss between the entities.
Islamic law considers money as a measuring tool for value and not an asset in itself. Therefore, it requires that one should not be able to receive income from money alone. Interest is deemed riba(interest), and such practice is proscribed under Islamic law. It is haram, which means prohibited, as it is considered usurious and exploitative.

The equity financing of companies is permissible, as long as those companies are not engaged in restricted businesses. Prohibited activities include producing alcohol, gambling, and making pornography.

Profit and Loss Sharing Contracts (Mudarabah)
The Islamic bank pools investors' money and assumes a share of the profits and losses. This process is agreed upon with the depositors. What does the bank or individual invest in? A group of mutual funds screened for Sharia compliance has arisen. The filter parses company balance sheets to determine whether any sources of income to the corporation are prohibited. Companies holding too much debt or engaged in forbidden lines of business are excluded. In addition to actively managed mutual funds, passive funds exist as well.

AllahIsShit:
Why do banks in Saudi Arabia and the Gulf States like Dubai UAE etc charge interest?

This isn't true.
Islamic banking or finance is any banking or financial activity that follows the principles of Shariah, a code of conduct that guides Muslims in economic, social and political matters.

Islamic banks work like conventional banks, except they have to obey specific Islamic principles. Perhaps the most popular principle is that interest is not allowed. Shariah mandates that all profit must come from work, and lending money to someone who needs it does not count as work. Under Islamic Finance, money is considered purely as a medium of exchange and store of value and cannot on its own, create more money – which is what happens with lending. Instead, a bank or financial institution has to provide some service to earn its profits.

Therefore, instead of conventional accounts with interest rates, Islamic banks provide services and accounts that offer profit or loss sharing mechanisms.

shina11:
ok.... you are a Muslim and a bank manager someone walk up to u for a loan will u add interest yes or no

This is what they do:

Let’s say I want to start a bread business, but I don’t have enough capital to build a bakery. I can take my proposal to an Islamic bank and convince them to invest in my project. The bank then funds my business, whether in cash or through assets, while I run the enterprise. I then split the profit from the bakery with the bank at a pre-agreed ratio, and if I make a loss, the bank loses its investment.

So, it’s sort of a win-win situation. The bank provides me with capital and generates earnings from sharing my profit, I kick-start my business and expand the enterprise with a partner ready to share my loss. This is called Mudarabah.

Shariah does not permit projects with high uncertainty, so both parties in the contract must disclose all possible risks and relevant information in the contract. With my bakery, for example, I have to outline all the risks that could prevent me from fulfilling my dream – from real estate concerns to flour prices – while the bank must inform me of all the strings attached to facilitating my investment.

This differs from conventional banking. If I approached a bank to fund my business, I would have been granted a loan with a predetermined interest rate. Let’s say they invest ₦1 million in my bakery; the bank would get its interest payments whether I succeed or not. I bear all the risk, unlike in Islamic finance where the risk is shared.

Islamic financial institutions also generate profits through Murabaha. Under Murabaha, an Islamic bank purchases an asset on behalf of a client, e.g. a car, and resells that asset to the client at a marked-up price. Usually, the client pays for the asset in instalments. Again, this differs from a conventional loan where the bank lends money to clients to buy the asset and charges them interest on the loan amount. With Murabaha, the bank finds the product, buys it and resells to the client with a markup.

Under Islamic finance, the bank is obligated to mention the cost incurred in the initial purchase of the car and how much is being added to the initial price.

Islamic banks tend to favour Murabaha contracts over Mudarabah contracts as the income from the former is guaranteed.

Albert0011:
So u expect me to me lend u money without any interest bah?

Na Una sabi o

THIS ONE IS NOT JUST A QURANIC VERSE THAT YOU LOVE TO HATE, GO AND READ YOUR BIBLE VERY WELL AND COME BACK AND TELL ME WHAT CHRIST SAID ABOUT RIBA/INTEREST

CC KOBOJUNKIE MIKECOLD

AllahIsShit:
Why do banks in Saudi Arabia and the Gulf States like Dubai UAE etc charge interest?

WHAT DID CHRIST SAID CONCERNING INTEREST

justkebir:
This is a clear cut text from the both religion as seen with evidences from the scriptures instead saying something rash why not just pray for GODS mercy and forgivess while seeking to repent ,,,cos most of us are guilty of this in many ways... may the Almight guide us all aright

I WONDER WHAT ANTIISLAM WILL NOW SAY ON THIS ONE SINCE HIS god CHRIST CONDEMNED IT TOO

Is Christ your Lord and Saviour? In any event, Christ did not discourage charging interest.

[author=OBALOLA55 post=107353163]WHAT DID CHRIST SAID CONCERNING INTEREST[/quote]

May Almighty Allah (swt) Bless You.
Interest rates(not charges) is quite Disturbing nowadays. May Almighty Allah(swt) Assist us.