Allah has forbidden the dealing in interest (riba).

Asalaamu Alaikum wa Rahmatullah

In the Name of Allaah, the Beneficiant, the All-Merciful, may His Salaah and Salaam be upon His final Messenger

                                                                        Part-1

Allah has forbidden the dealing in interest (riba).

Riba, linguistically is derived from the past verb yarbu meaning increased and grew

Allah said: O you who believe! Do not consume riba doubled and multiplied [3:130]

Riba occurs, for instance, when the time to pay a loan comes, the creditor says to the debtor, "Either pay now, or the loan will incur interest.'' If the debtor asks for deferment of the loan, the creditor would require interest and this would occur year after year until the initial capital becomes multiplied many times.

Rasulullah salla Allahu alayhi wa sallam said: One Dirham consumed by a person knowing that it is riba is more severe in sin than committing zina (fornication) 36 times

[Ahmad, al-Tabaraani; classed as saheeh by al-Albaani in Saheeh al-Jaami’, no. 3375]

And he salla Allahu alayhi wa sallam said: There are seventy-two types of riba, the least of which is like a man committing incest with his mother

[al-Tabaraani; classed as saheeh by al-Albaani in Saheeh al-Jaami’, no. 3537]

Jabir Ibn Abdullah reports that Rasulullah salla Allahu alayhi wa sallam cursed the receiver of interest and the payer thereof, the one who records it and the two witnesses thereof.

He said: They are all alike [in guilt]

[Muslim, Tirmidhi, Ahmad]

Allah said: Those who devour riba shall rise up before Allah like men whom Shaitan has demented by his touch; for they claim that trading is like riba. But Allah has permitted trading and forbidden riba [2:275]

Interest is fundamentally different from trading and is a corruption in the order of the creation. More on which, later insha’Allah.

Interest had also been forbidden for the People of the Book.

Because of the wrongdoing of the Jews We forbade them good things which were (before) made lawful unto them, and because of their much hindering from Allah's way, and of their taking usury when they were forbidden it and their devouring the wealth of people falsely [4:160 -161]

However, according to the Old Testament it is not forbidden for a Jew to charge interest to a non-Jew.

Thou shall not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury:
Unto a stranger thou may lend upon usury; but unto thy brother thou shall not lend upon usury: that the Lord thy God may bless thee in all that thou set thine hand to in the land whither thou goes to possess it.

[Deuteronomy 23:19-20]

Allah says regarding the corruption of the previous books sent down by Him:

So woe unto those who write the book with their own hands and then say this is from Allah in order to purchase a small price with it [2:79]

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