What is Riba (Usury)?

Riba (usury) in Islam refers to any unjustified increase in wealth through interest-based transactions. It is strictly prohibited in the Quran (2:275) as it exploits the needy and creates economic inequality. Islam encourages ethical trade and charity instead, promoting fairness and social justice in financial dealings.

Why Riba is forbidden in Islam:

Riba is forbidden in Islam as it promotes exploitation, widens economic inequality, and creates unjust financial gains without effort. The Quran (2:278-279) warns of severe consequences, including a "war from Allah and His Messenger."

Islam encourages ethical trade and charity, ensuring fairness, social justice, and economic stability.

Utilization of Riba (Usury) fund:

In Islam, Riba cannot be used for personal benefit. Scholars advise disposing of it by donating to public welfare, such as helping the poor, funding hospitals, or community services, without seeking reward.

This prevents personal gain while ensuring the impermissible wealth serves a beneficial, non-profitable purpose.

O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war from Allah and His Messenger. But if you repent, you may have your capital—[thus] you do no wrong, nor are you wronged.

Surah Al-Baqarah (2:278-779)

“That which you give as interest to increase the wealth of people will not increase with Allah. But what you give in charity, desiring the pleasure of Allah—those are the multipliers.”

Surah Ar-Rum (30:39)

“And for their taking of usury while they had been forbidden from it, and their consuming of people's wealth unjustly. And We have prepared for the disbelievers among them a painful punishment.”

Surah An-Nisa (4:161)