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:

ASSALAM-O-ALAIKUM,
PLEASE GIVE ME THE ANSWER OF THE QUESTION. IS BANK INTEREST HALAL OR HARAM IN PRESENT GLOBAL CITUATION?

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Is Interest Haraam

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.

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!

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took riba, those who paid it, those who recorded it, and those who refused to give sadaqah.

Your Question: IS BANK INTEREST HALAL OR HARAM IN PRESENT GLOBAL CITUATION?

The scholars and jurists in Islam are absolutely unanimous in their opinion that the present form of ‘interest’ is a part and manifestation of ‘riba’, and thus all dealings of conventional interest are absolutely forbidden for the believers who sincerely believe in Allah and the Last Day.

Beloved brother in Islam, it is not as if what we call and term ‘global situation’ today is or was ever unknown to the All-Knowing, All-Wise, All-Seeing Allah Subhanah, the Lord, Creator and Sustainer of the Worlds; and He it is who has declared the concept of ‘riba’ as absolutely haraam, forbidden, and impermissible for those who sincerely believe in Him and the Last Day.

My dear and beloved brother, ‘bank-interest’ is a clear and manifest part of the evil of ‘riba’ which Allah and His Messenger (saws) have declared absolutely haraam and forbidden in no uncertain terms; thus let no modern scholar, no jurist, no economist, absolutely no-one, convince you otherwise!

If one trusts, obeys, and follows the guidance and commands of Allah and His Messenger (saws), one 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), one 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 alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan