2. [al-Baqara, Medina 87 ]

The Quranic Text & Ali’s Version:

الَّذِينَ يَأْكُلُونَ الرِّبَا ...

2: 275. Those who devour usury

C324. Usury is condemned and prohibited in the strongest possible terms. There can be no question about the prohibition.

When we come to the definition of Usury there is room for difference of opinion. 'Umar, according to Ibn Kathir, felt some difficulty in the matter, as the Prophet left this world before the details of the question were settled. This was one of the three questions on which he wished he had more light from the Prophet, the other two being Khilafah and Kalalah (see 4:12 n. 518).

Our 'Ulama, ancient and modern, have worked out a great body of literature on Usury, based mainly on economic conditions as they existed at the rise of Islam. (R).

... لاَ يَقُومُونَ إِلاَّ كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ...

will not stand except as stands one whom the Evil One by his touch hath driven to madness.

C325. An apt simile: whereas legitimate trade or industry increases the prosperity and stability of men and nations, a dependence on Usury would merely encourage a race of idlers, cruel blood-suckers, and worthless fellows who do not know their own good and are therefore akin to madmen.

... ذَلِكَ بِأَنَّهُمْ قَالُواْ إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا...

That is because they say: "Trade is like usury",

but Allah hath permitted trade and forbidden usury.

C326. Owing to the fact that interest occupies a central position in modern economic life, and specially since interest is the very life blood of the existing financial institutions, a number of Muslims have been inclined to interpret it in a manner which is radically different from the understanding of Muslim scholars throughout the last fourteen centuries and is also sharply in conflict with the categorical statements of the Prophet (peace be on him).

According to Islamic teachings any excess on the capital is riba (interest). Islam accepts no distinction, insofar as prohibition is concerned, between reasonable and exorbitant rates of interest, and thus what came to be regarded as the difference between usury, and interest; not between returns on bonus for consumption and those for production purposes and so on. [Eds]

... فَمَن جَاءهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىَ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللّهِ...

Those who, after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (to judge);

... وَمَنْ عَادَ فَأُوْلَـئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ ﴿٢٧٥﴾

but those who repeat (the offence) are companions of the fire: they will abide therein (for ever).

يَمْحَقُ اللّهُ الْرِّبَا وَيُرْبِي الصَّدَقَاتِ...

2: 276. Allah will deprive usury of all blessing, but will give increase for deeds of charity:

... وَاللّهُ لاَ يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ ﴿٢٧٦﴾

for He loveth not creatures ungrateful and wicked.

إِنَّ الَّذِينَ آمَنُواْ وَعَمِلُواْ الصَّالِحَاتِ وَأَقَامُواْ الصَّلاَةَ وَآتَوُاْ الزَّكَاةَ...

2: 277. Those who believe, and do deeds of righteousness, and establish regular prayers and regular charity,

... لَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْ وَلاَ خَوْفٌ عَلَيْهِمْ وَلاَ هُمْ يَحْزَنُونَ ﴿٢٧٧﴾

will have their reward with their Lord: on them shall be no fear, nor shall they grieve.

C327. The contrast between charity and unlawful grasping of wealth began at 2:274, where this phrase occurs as a theme. Here the theme finishes with the same phrase.

The following four verses refer to further concessions on behalf of debtors, as creditors are asked to;

a. give up even claims arising out of the past on account of usury, and

b. give time for payment of capital if necessary, or

c. to write off the debt altogether as an act of charity.

يَا أَيُّهَا الَّذِينَ آمَنُواْ اتَّقُواْ اللّهَ وَذَرُواْ مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ ﴿٢٧٨﴾

2: 278. O ye who believe! fear Allah, and give up what remains of your demand for usury, if ye are indeed believers.

فَإِن لَّمْ تَفْعَلُواْ فَأْذَنُواْ بِحَرْبٍ مِّنَ اللّهِ وَرَسُولِهِ ...

2: 279. If ye do it not, take notice of war from Allah and His Messenger:

C328. This is not war for opinions, but an ultimatum of war for the liberation of debtors unjustly dealt with and oppressed.

... وَإِن تُبْتُمْ فَلَكُمْ رُؤُوسُ أَمْوَالِكُمْ لاَ تَظْلِمُونَ وَلاَ تُظْلَمُونَ ﴿٢٧٩﴾

but if ye turn back, ye shall have your capital sums; deal not unjustly, and ye shall not be dealt with unjustly.

Pickthall’s Version:

2: 275

Pickthall Those who swallow usury cannot rise up save as he arise whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permit trading and forbid usury. He unto whom an admonition from his Lord cometh, and (he) refrain (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who return (to usury)--Such are rightful owners of the Fire. They will abide therein.

Allazina ya'kulu_nar riba_ la_ yaqu_mu_na illa_ kama_ yaqu_mul lazi yatakhabbatuhusy syaita_nu minal mass(i), za_lika bi annahum qa_lu_ innamal bai'u mislur riba_, wa ahallalla_hul bai'a wa harramar riba_, fa man ja_'ahu_ mau'izatum mir rabbihi fantaha_ fa lahu_ ma_ salaf(a), wa amruhu_ ilalla_h(i), wa man 'a_da fa ula_'ika asha_bun na_r(i), hum fiha_ kha_lidu_n(a).

[ Ruby’s comment – I think the difference between business and usury are as follows: 1. Risk taking - is business where as risk-free lending is riba, if a lending is associated with risk taking, then it may fall in the category of business provided other conditions meet. 2. Lending or taking a loan in the process of Producing goods and services in business, where as charging a price of money without any such involvement or intend such as in the case of an individual or group taking loan in time of private need. If money is invested or loaned to in the process of creating goods and services, then it can be business. 3. Riba is generally loan sharking that is charging exorbitant interest where there is no provision for any future contingencies except that money needs to be paid back no matter what the financial condition of the lender. The inherent intention of this loan sharking is to help create a situation for the borrower whereby the borrower either would be in increasing difficulty or would not be able to pay the principle plus huge accumulated interests and as a result become indebted to the lender for his/her properties etc. This needs to be understood in the historic context of riba at the time of revelation and also subsequent period across the world how families and individuals have become victims of riba. These consideration should be taken into account in the prohibition for this kind of money lending where the intend, modes operandi and the outcome all are relevant in determining whether a particular type of transaction falls into riba or not.

I believe the interest modern banking system charge is not riba, because the money is invested in producing goods and services and then a part of the income is paid back among the investors/depositors, or loaned to produce such goods and services. The risk is there because the bank itself can be bankrupt down the process and most of the financial institutions do take a compromise settlement or debt reduction in time of financial stress. ]

2: 276

Pickthall Allah hath blighted usury and made almsgiving fruitful. Allah loveth not the impious and guilty.

Yamhaqulla_hur riba_ wa yurbis sadaqa_t(i), walla_hu la_ yuhibbu kulla kaffa_rin asim(in).

2: 278

Pickthall O ye who believe! Observe your duty to Allah, and give up what remaineth (due to you) from usury, if ye are (in truth) believers.

Transliteration Ya_ ayyuhal lazina a_manut taqulla_ha wa zaru_ ma_ baqiya minar riba_ in kuntum mu'minin(a).

2: 279

Pickthall And if ye do not, then be warned of war (against you) from Allah and His messenger. And if ye repent, then ye have your principal (without interest). Wrong not, and ye shall not be wronged.

Transliteration Fa illam taf'alu_ fa'zanu_ bi harbim minalla_hi wa rasu_lih(i), wa in tubtum fa lakum ru'u_su amwa_likum, la_ tazlimu_na wa la_ tuzlamu_n(a)