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:

asslamu alaikkum,

well brother i know that give and take of interest is riba. if we take loan from a bank is it considered as riba.If at times we have no other choice for any urgent expense and we take a loan and pay it back fully when we are capable, will that too be a great sin? please do advice a i am in such a situation.

your well wisher and brother

Kind regards

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Answer:

Loan and interest

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 none 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 (of Hell Fire)!

Al-Tirmidhi Hadith 2827 Narrated by Abdullah ibn Mas'ud

Allah's Messenger (saws) said, "Even though usury be much, it leads in the end to penury."

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 usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

Sunan of Abu-Dawood Hadith 3325 Narrated by Abu Hurayrah

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

Your Question: ….well brother i know that give and take of interest is riba. if we take loan from a bank is it considered as riba.

If one were to take an interest-bearing loan from a conventional bank, without an iota of a doubt, such a transaction would be clear manifestation of the evil of ‘riba’!

Your Question: If at times we have no other choice for any urgent expense and we take a loan and pay it back fully when we are capable, will that too be a great sin? please do advice a i am in such a situation.

Dear and beloved brother in Islam, it is not the taking out of a loan which is disallowed or unlawful in Islam, but it is the taking or the giving of interest (riba) on the loan taken which is absolutely unlawful and forbidden by Allah and His Messenger (saws).

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.

If one gives an interest-free loan to help their distressed believing brother/sister only for the sake of Allah Subhanah, they shall have a huge reward for their deed in the Presence of their Lord…..but if one gives or takes a loan based on interest, both shall bear the burden of their evil and their indulgence in the unlawful in the Presence of their Lord Most Majestic, Most Supreme.

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