Usury - Forbidden in the Holy Quran

Usury is expressly forbidden in the Holy Quran.  The Holy Quran declares it such a grave sin that no other sin is as grave as this.  For consuming wine, pork, adultery, etc., the Holy Quran does not warn in such an emphatic manner they way it does for consuming usury.  Allah Ta'ala says:

 

O Believers! Fear Allah and write off whatever balance remains of usury if you are believers (true to the core of your hearts).  But if you do not do so, then stand red-alert on the declaration of war from Allah and His Holy Messenger (blessings and peace be upon him). And if you repent, then your principal amounts are (lawfully) yours. Do not wrong and be not wronged.  Surah Baqarah (2: 278/279)

 

Allah Ta'ala also says:

 

Those who live on usury will not be able to stand (on the Day of Judgment) but like the one whom Satan has made insane with his touch (damnation). This is because they used to say that trade (buying and selling) is similar to usury whereas Allah has declared trading (buying and selling) lawful and usury unlawful. So, if someone refrained (from usury) on receiving admonition from his Lord, then he can keep whatever he took in the past and his case is with Allah. But those who continued with usury (despite the admonition) would be the inmates of Hell. There will they stay permanently.  Surah Baqarah (2:275)

 

It is again mentioned in Surah Ale-Imran

 

O Believers! Do not live on usury doubled and redoubled and keep fearing Allah so that you may prosper.  Surah Ale-Imran (3:130)

 

The warnings for those who consume usury have been mentioned in many Hadith.  Only to illustrate the point, some Hadith are being mentioned here.

 

There is a Hadith in Sahih Muslim and Sunan Ibn Majah:

 

Translation of Hadith: It has been narrated on the authority of Hadhrat Jabir (May Allah be well pleased with him), he said that the Holy Prophet (Sallallahu alaihi wa sallam) has cursed those who consume usury, those who lend on usury, those who record these transactions and those who give witness to it and said that all of them are equal in sin.  (Sahih Muslim, Hadith No. 2955; Sunan Ibn Majah, Hadith No. 2268).

 

There is a Hadith in Musnad Iman Ahmed bin Hambal, Sunan Dar Qutni, Mishkaat Ul Masabeeh and Zujajatul Masabeeh:

 

Translation of Hadith: Hadhrat Abdullah Bin Hanzlah (May Allah be well pleased with him), the one who was given the funeral bath by the angels, he said that the Holy Prophet (Sallallahu alaihi wa sallam) said:  Consuming a single Dirham of usury is more critical than committing adultery 36 times with one's mother.  (Musnad Iman Ahmed bin Hambal, Hadith No. 20951)

 

There is a Hadith in Shu'abul Iman of Imam Baihaqui:

 

Translation of Hadith:  The flesh which has been nourished with forbidden food is suitable only for the fire of hell.  (Shu'abul Iman, Hadith No. 5277)

 

There is a Hadith in Mishkatul Masabeeh:

 

Translation of Hadith: The Holy Prophet (Sallallahu alaihi wa sallam) said:  There are 70 degrees of usury, the least among them is committing adultery with one's mother.  (Mishkatul Masabeeh, Babul Riba, Pg. No. 246)

 

Every person should keep the above mentioned verses of the Holy Quran and the Hadith in mind and should not at all participate or support these activities.

 

Shariah ruling about accepting interest from bank:

 

Usury is expressly forbidden as explained in detail in the above lines.  About depositing money in bank, the ruling is different on whether the country is an Islamic one or non-Islamic one.  In a non-Islamic country, Improper Sale (Bai Fasida) is permissible, which means that in a non-Islamic country, if in a transaction between a Muslim and a non-Muslim, if the Muslim gets extra money without any cheating of any kind, then it will not be considered as usury.  In an Islamic country, the same kind of transaction is an usury-based transaction and is forbidden.

 

Thus, the extra money gained from a non-Muslim financial institution in a non-Muslim country does not come under usury and can be used.  However, in an Islamic country, irrespective of whether the transaction is with a Muslim or someone else and whether the financial institution is Muslim or a non-Muslim one, such extra money is usury, which is Haraam and forbidden.  It is Wajib to give away that amount in charity.  It cannot be used for one's own needs.  As per the Hadith recorded and mentioned by Imam Burhanuddin Farghani (May Allah shower His Mercy on him) in Hidayah, Vol. 3, Pg No: 86.