The Shar’ee implications of being associated with a riba-based institute

Q: Why is it impermissible in shariah to take interest bearing loans from the bank?

A: The conventional bank, which in reality is a riba-based system, is aimed towards enslaving man to his carnal desires through the agency of providing him with loans on interest. Many people, due to their naivety and limited understanding, view the ‘benefits’ and ‘privileges’ afforded to them by the bank (OD facility, etc.) as a means of their progress and advancement, only to realise at the end that they have been entrapped in the snare of Shaitaan.

The outcome of these loans is that one will live beyond his means, labouring under the misconception and fallacy that the bank will always aid him and be at his side in his hour of need. The pitiful result is that one eventually finds himself drowning in a sea of debts, enslaved to the conventional banks in a never-ending effort to pay off the interest on the loan which in many cases, eventually exceeds the actual loan.

Islam has strongly condemned this inhumane system in such unequivocal and categorical terms that no other evil has been condemned so strongly in the Holy Qur’aan. Allah Ta`ala says:

یٰۤاَيُّهَا الَّذِينَ اٰمَنُوا اتَّقُوا اللّٰهَ وَذَرُوا مَا بَقِىَ مِنَ الرِّبٰۤوا إِن كُنتُم مُّؤْمِنِينَ﴿٢٧٨﴾ فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللّٰهِ وَرَسُولِهِ ۖ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ ﴿البقرة: ٢٧٩﴾

O you who believe, fear Allah and give up all interest dealings, if you are believers. But if you do not desist from it, then be informed of a war against Allah and His Rasul (sallallahu ‘alaihi wasallam). However, if you repent, then you will be allowed to take back your capital; do not deal unjustly, and you shall not be dealt with unjustly.

Hazrat Abdullah bin Hanzalah (radhiyallahu ‘anhu) reported that Rasulullah (sallallahu ‘alaihi wasallam) said:

عن عبد الله بن حنظلة غسيل الملائكة رضي الله عنه قال قال رسول الله صلى الله عليه وسلم درهم ربا يأكله الرجل وهو يعلم أشد من ستة وثلاثين زنية (مسند أحمد رقم 21957)

“Consuming one dirham of riba knowingly is worse than committing zina thirty-six times.”

On the occasion of the farewell pilgrimage, Rasulullah (sallallahu ‘alaihi wasallam) declared:

قال رسول الله صلى الله عليه وسلم إن دماءكم وأموالكم عليكم حرام كحرمة يومكم هذا فى شهركم هذا فى بلدكم هذا ألا إن كل شىء من أمر الجاهلية تحت قدمى موضوع … وربا الجاهلية موضوع وأول ربا أضعه ربانا ربا عباس بن عبد المطلب فإنه موضوع كله (سنن أبي داود رقم 1907)

“Indeed, your life and wealth are sacred upon you like the sanctity of this day, in this auspicious month, in this blessed land. Remember! All pre-Islamic ways and practices (against the Deen of Islam) are abolished beneath my feet…. All interest dealings which used to take place in the pre-Islamic era (jaahiliyyah) are abolished in Islam. The first debt of riba that I abolish is the riba owed to my uncle, Abbas ibn Abdil Muttalib (radhiyallahu ‘anhu).”

And Allah Ta’ala (الله تعالى) knows best.

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

Why is riba condemned in Shariah?

Q: Why is riba condemned in Shariah?

A: The western economic system, which is based on interest, has resulted in concentrating the wealth and resources of the world into the hands of a few select individuals.

The money of the rich is pooled in banks and offered to the poor, according to their financial status, under the pretext of fulfilling their needs and requirements with the condition of interest attached, thereby making it extremely difficult for them to continue life and escape their poverty.

The outcome is that the wealthy thrive and prosper through the blood and sweat of the poor. Hence, they create monopolies and become richer while the poor become poorer in slogging to pay off their debts to the rich. In essence, riba has achieved nothing besides widening the gap between the rich and the poor, causing man to fall deeper into the abyss of destruction. Worst of all, it gradually sucks the blood of the poor and entraps them in slavery that is not in the form of shackles and chains, but rather in the form of anxiety and sleepless nights.

Many countries’ deficit accounts run into billions due to the interest-bearing loans that are borrowed from other countries, the brunt of which is borne by none but the citizens of the borrowing countries. The reality of the matter is that today’s ten richest men in the world own more than the combined wealth of 48 poor countries of the world. Millions are malnourished, lack access to pure water, underprivileged in terms of the basic necessities of life and are deprived of education.

In contrast, Islam advocates brotherhood and showing kindness and compassion to the creation. One is permitted and encouraged to earn a halaal living. However, this must be done together with maintaining a balance and with fulfilling the needs of the creation.

And Allah Ta’ala (الله تعالى) knows best.

الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللَّـهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءَهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىٰ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّـهِ وَمَنْ عَادَ فَأُولَـٰئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ ﴿البقرة: ٢٧٥﴾

يَا أَيُّهَا الَّذِينَ آمَنُوا إِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالْأَنصَابُ وَالْأَزْلَامُ رِجْسٌ مِنْ عَمَلِ الشَّيْطَانِ فَاجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَ ﴿المائدة: ٩٠﴾

عن جابر رضي الله عنه قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء رواه مسلم ( مشكوٰة المصابيح ص244)

عن أبي هريرة عن رسول الله صلى الله عليه وسلم قال ليأتين على الناس زمان لا يبقى أحد إلا أكل الربا فإن لم يأكله أصابه من بخاره ويروى من غباره رواه أحمد وأبو داود والنسائي وابن ماجه ( مشكوٰة المصابيح ص245)

وعن عبد الله بن حنظلة غسيل الملائكة قال قال رسول الله صلى الله عليه وسلم درهم ربا يأكله الرجل وهو يعلم أشد من ستة وثلاثين زنية رواه أحمد والدراقطني وروى البيهقي في شعب الإيمان عن ابن عباس وزاد وقال من نبت لحمه من السحت فالنار أولى به ( مشكوٰة المصابيح ص245)

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)