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:

Dear Brother,
Assalamualaikum wa rahmat Allah wa barakatuhu wa maghfiratuhu.

Firstly, Jazaak Allah Khair for maintaining this most noble trend of promoting Hadith and discussions in the path of righteousness. May Allah provide you (and all of us) His grace, guidance, maghfirath, mercy, rahmat, barkat, blessings, peace and protection – in this world, in the grave and in the hereafter. For many of us, this has been the opener on the will to faith & will to guidance.

I have one question that is difficult for me to ask. But I will try to put it in the easiest of words.

I try my best to stay within the regulations of Sharia` and practice Islam to its best upon myself, my family and those around me. However, the world is full of misleading, which make it sometimes difficult for us to judge between right & wrong. My question was about "Ribaa" (Interest/Usury or whatever else it may be called). I abstain from it by keeping my money in Banks where we insist that the account should be Interest-free. So I don`t get any Interest on my account and I am happy that way.

However, in the past (some FIVE years ago) I did happen to invest in some money-policies here & there, wherein I have paid a premium amount for a period of five years (which is a major part of my saving). The policy states that it will take about 25 years maturity after which I will be returned the principle amount and whatever Bonus the company makes from my money. (But the policy does not specifically define the percentage or rate of Bonus – and it does not say Interest). I did a study and found out that the company will use my money in investing in shares/stakes. Also that since the maturity period is for 25 years (very long time) I assume that the company should recover from loses if any and eventually have a profit for me (inshallah). The risk I have associated is by committing to a huge amount on an annual basis for a period of five years and a wait-period of 25 years (risking devalue for the rate of money after 25 years). I was under the impression that Inshallah with the associated risks it may be Halal. But the thought of Halal/Haram was on my mind all the while. I consulted with many persons and half of them tell it is Halal & others say it is Haram. The reasoning given for it being Haram is that (1) the policy claims that at the end of 25 years I will get back the complete principle amount for sure (which is against Sharia`) and (2) it is not sure where the company will invest my money for they could end up buying shares from a Banking sector or from a Liquor factory or only Allah-knows which other forbidden areas. If I abort the policy then I may be in a loss of millions (which I don`t mind if its haram). If I can continue the policy then Inshallah I should be OK in my attempt to save for the future. (please note that I am not planning for the future, since only Allah knows best about all of us and our future. But from our side we should also be prepared to try and secure and Inshallah will be secured in terms of growing up our kids & their education etc etc. I am only tying the camel!!)

Dear Brother please advice me on what the right opinion may be and Inshallah we shall apply. Also alongside, I will really appreciate if you can generally provide Hadith/Quranic verses that should shed light on this area and also that will generally give learning about forbidding Interest (and its consequences).

JazakAllah Khair brother. I truly apologize for such a long email, but I need to know what the truth is since this topic has been haunting me for a long while.

Wa alaikum salam.
Regards

(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:

Guaranteed returns riba

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)!

Allah Says in the Holy Quran Chapter 3 Surah Ale-Imraan verses 130-132:

130 O ye who believe! Devour not ‘riba’ doubled and multiplied; but fear Allah; that ye may (really) prosper.

131 Fear the Fire which is prepared for those who reject faith.

132 And obey Allah and the Messenger; that ye may obtain mercy.

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.

Dear and beloved brother in Islam, Allah and His Messenger (saws) have declared every aspect and every manifestation of the abomination of ‘riba’ (usury, interest, etc.) as absolutely forbidden for the believers who sincerely fear Allah and the Last Day; thus let no one convince you otherwise!!!

Although some ignorant people have tried to translate ‘riba’ as ‘usury’ or excessive interest, we assure you in the Blessed Name of Allah Subhanah brother, every single aspect or manifestation of the evil of ‘riba’….be it interest or usury, etc…..every single manifestation of the abomination of ‘riba’ is absolutely and catergorically forbidden for the believers, and a grave sin in the Sight of Allah Subhanah.

Your Statement: (1) the policy claims that at the end of 25 years I will get back the complete principle amount for sure (which is against Sharia`) and

Beloved brother, if you have invested an amount in any scheme, and the scheme policy claims that at the end of the prescribed period, you are ‘guaranteed’ (at least) the return of your capital, then without an iota of a doubt, such an investment cannot be devoid of the abomination of ‘riba’….and thus such a scheme would be absolutely unlawful for the believers who sincere fear Allah and the Last Day, and fear the ‘War’ against Allah and His Messenger (saws) which the consumers of ‘riba’ have been warned.

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!

Your Statement: (2) it is not sure where the company will invest my money for they could end up buying shares from a Banking sector or from a Liquor factory or only Allah-knows which other forbidden areas.

If the investment scheme ‘guarantees’ the return of the capital invested, regardless of where or how it invests those funds….such a scheme would constitute to have indulged in the abomination of ‘riba’ and is thus unlawful for the believers.

Your Statement: If I abort the policy then I may be in a loss of millions (which I don`t mind if its haram). If I can continue the policy then Inshallah I should be OK in my attempt to save for the future.

May Allah Subhanah reward you abundantly in this world and the Hereafter for your piety and for your zest and keenness to remain obedient to the guidance and the Laws and Boundaries of Allah Subhanah.

Dear and beloved brother, whatever it takes, you must find a way to dis-invest yourself from this particular scheme which is evidently based on the unlawful system of ‘riba’; and you will be lawfully entitled to use and consume only the capital which you had invested in the scheme. If you do this only for the sake and fear of Allah Subhanah, rest absolutely assured that whatever material loss your obedience to the Command and Guidance of your Lord Creator might seemingly cause you in the life of this short and transitory world…..your Lord Most Gracious Most Bounteous will not only pay you your full retribution in the ‘currency’ of the Hereafter, but will reward you abundantly from His Grace and Bounty for your obedience and your faith, Insha Allah.

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