Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

salaam,

since i got the answer that working in such financial institutions which deal in usuary (sood) like banks etc is haraam ,i was quite satisfied by your answer but one of my teacher who is very relegious and highly educated man,has altered my mind by saying that doing jobs in banks are not haraam,he gave me some points which are preety solid and make one think over it again and again,so once again i am in dilemma (because i want to take "BANKING" as a majors in my MBA and second there is a job in bank for me right after completion of MBA),so i am quoting some major points,please kindly help me out by the grace of ALLAH ,those points are as follows :-

1) usuary is what u get a certain amount or ratio of profit without any workin/toiling while in banks u as an owner and employees work (like decision making,planning,accounting ,marketing alike other finacial institutes)is done

2) In entire world, business sector cannot survive without taking loans(no matter what is the ratio of it,mean u invest 60% while u take loan 40%),and no one under any circumstances gives u loan without charging intrest on it ,specially banks cannot afford it since they have to pay to their employees and sustain other organizational facilities.

3)If one who deposits some money in bank has to get intrest(or profit) not at fixed ratio according to islamic rules,but banks cannot afford this because if they do business and give away money to other industries at fluctuated profits rates rather fixed rates ,banks will never be able to run their functions because industries and organizations have thousands of ways to remain showing losses in their balance sheets ,in this way banks will put themselves at stake in this way...they had to adopt fixed rate

4)Our whole country is being run on loan taken at highly fixed rates of interests and furthur given to other governmental and non governmantal institues at fixed rates,so wont u consider the employees of government and non government organizations earning haraam in shape of salaries?in this way all soldiers and even president and prime ministers are getting pay from intrest oriented loans given by world bank and paris club?

I would highly appreciate your reply,plz dont forwrd old forwarded stuff relating to such topics.I could only pray for u ,only ALLAH can give u the best jaza...JAZAQALLAH

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Answer:

Some scholars say interest is halaal

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad(saws) is His slave-servant and the seal of His Messengers.

Your Statement: since i got the answer that working in such financial institutions which deal in usuary (sood) like banks etc is haraam ,i was quite satisfied by your answer but one of my teacher who is very relegious and highly educated man,has altered my mind by saying that doing jobs in banks are not haraam,he gave me some points which are preety solid and make one think over it again and again Beloved Brother in Islam, Allah and His Messenger (saws) have unequivocally declared ‘riba’ or usury as haraam. No matter what any scholar says, and no matter how logical he may make his argument; interest is a part of ‘riba’, and will always be considered ‘haraam’ in the sight of Allah Subhanah.

The Quran condemns ‘riba’ or usury in extremely strong terms, and let no scholar or economist or the modern ‘educated’ muslim tell you otherwise!

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Thus, brother, in answer to your specific question, the Holy Quran is extremely clear in its condemnation of ‘riba’ and there should be no doubt in the believer’s mind about it. There are some modern ‘thinkers’ who have tried to justify the current concept of interest as legal, but the Quran leaves no doubt about it in the least that ‘riba’ is ‘haraam’ and Allah and His Messenger (saws) have warned of a declaration of war against those who practice ‘riba’. For a believer, this should be enough ‘incentive’ to stay far away from ‘riba’.

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali heard Allah's Messenger (saws) curse those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

Your Statement-1) usuary is what u get a certain amount or ratio of profit without any workin/toiling while in banks u as an owner and employees work (like decision making,planning,accounting ,marketing alike other finacial institutes)is done Beloved brother, when Allah and His Messenger (saws) have declared a thing as haraam; all roads that lead to or associate or facilitate the haraam will also be considered forbidden.

Allah and His Messenger (saws) have declared intoxicants like alcohol, drugs, etc. as haraam. Now, if someone who himself abstains from consuming intoxicants, but is involved in the making, planning, selling, and marketing of the intoxicants just like any other business; would we still call that a legal or halaal business?? No brother, the business and whatever the person earns from the haraam business will also be considered haraam.

Your Statement-2) In entire world, business sector cannot survive without taking loans(no matter what is the ratio of it,mean u invest 60% while u take loan 40%),and no one under any circumstances gives u loan without charging intrest on it ,specially banks cannot afford it since they have to pay to their employees and sustain other organizational facilities.

Islam does not encourage or reward the ‘riba’ based system of finance, which is unfortunately so prevalent in the world today. Islam encourages the people to invest their money for the betterment of society. The interest-based financial system of the world today encourages the people to hoard money, and have created interest-based financial institutions to supply this hoarded money on interest to the person who is willing to put his time and energy into a business. Whether the business thrives or fails, the lender always makes money without taking active part in the business itself. This interest based system of the world has developed a scenario where the rich get richer, and the poor get poorer!

The non-interest based Islamic system of commerce encourages the fair distribution of wealth and rewards those who are willing to actively participate in the risks and rewards of the business.

Your Statement-3) If one who deposits some money in bank has to get intrest(or profit) not at fixed ratio according to islamic rules,but banks cannot afford this because if they do business and give away money to other industries at fluctuated profits rates rather fixed rates ,banks will never be able to run their functions because industries and organizations have thousands of ways to remain showing losses in their balance sheets ,in this way banks will put themselves at stake in this way...they had to adopt fixed rate

Firstly, Islam does not encourage the system of hoarding money by a few individuals in a society so that they may be allowed to increase their wealth without any risk whatsoever, at the expense of the general society. Besides the Islamic system of commerce protects the interests of all the members of society, and not the functioning and protection of the banking system alone!

Your Statement-4) Our whole country is being run on loan taken at highly fixed rates of interests and furthur given to other governmental and non governmantal institues at fixed rates,so wont u consider the employees of government and non government organizations earning haraam in shape of salaries?in this way all soldiers and even president and prime ministers are getting pay from intrest oriented loans given by world bank and paris club?

Sunan of Abu-Dawood Hadith 3325 Narrated by Abu Hurayrah

The Prophet (saws) said: “A time is certainly coming to mankind when only the receiver of usury will remain, and if he does not receive it, some of its vapour will reach him.”

Unfortunately, we live in such times today. The Prophet (saws) said that a time will come, when even if one tries his utmost to stay away from ‘riba’, the whole society and surroundings will be so much engrossed in ‘riba’, that some of its vapour or dust will reach this pious person.

Indeed it is unfortunately true that most of the third world and even developing countries are bogged down with loans and therefore subservient to the policies and commands of the rich nations who have created financial institutions like the World Bank and the International Monetary Fund. A huge percentage of the GDP of these poor nations is spent on servicing the loans they receive from these financial institutions; which make sure that these poor nations never ever come out of the debt trap and thus forever remain subservient to the whims and fancies of the rich nations who in effect control these international financial institutions.

The interest-based conventional financial system of the world is based on oppression and injustice and is bound to fail. The Islamic system of commerce is based on the Perfect and Absolute Wisdom of Allah Subhanah, the Lord and Creator of the Worlds.

Beloved brother, Islam offers an alternative to the conventional unjust and biased form of commerce and finance which is based on equality and fairness for all members of society. Modern Islamic financial institutions have come a long way since the 30-40 years they have been established, and they probably have a long way to go and improve, to compete with the conventional financial institutions of the world.

You may very well do your major in finance and banking in your MBA education and join the brothers who are striving to present a financial system based on Shariah compliance to the world. If you join the Cause and keep your trust and faith in Allah Subhanah, He will, if He Pleases, reward you generously from His unending bounty in this world and in the Hereafter.

If one trusts, obeys, and follows the guidance and commands of Allah and His Messenger (saws), he can be assured of never ever being misled; but if one believes, obeys and follows any other guidance, other than that of Allah and His Messenger (saws), he can be assured of being led astray.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Your Brother in Islam,

Burhan