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 Alaikum w.r.b.,

May Allah reward you for the noble deed of spreading the Message of the Glorious Quran and the way of life as recommended by Allah's Messenger [S.A.W.] As per my limited understanding, it is 'haraam' to take interest/riba in Islam. Is it also explicitly 'haraam'to give interest?

Following are some of the activities:

Taking a Loan for building a house/buying some property

Securing a property as guarantee to finance a business

Opening Letter of Credit and paying interest while conducting business

Credit Card transactions etc..

Please elaborate with respect to the current economic situations in the world.

Jazak Allah Kheir.

(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:

Can one pay 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 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 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)!

Sahih Al-Bukhari Hadith 7.259 Narrated by Abu Juhaifa

The Prophet (saws) invoked the curse of Allah on the lady who practices tattooing, and the one who gets herself tattooed; and one who eats (takes) Riba' (usury) and the one who gives it.

Sunan of Abu-Dawood Hadith 3327 Narrated by Abdullah ibn Mas'ud

The Apostle of Allah (peace be upon him) invoked the curse of Allah on the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it.

Most of the aayahs of the Holy Quran regarding the concept of ‘riba’ are for the ones taking it; but it is appropriately and authentically recorded that the Messenger of Allah (saws) specifically invoked the curse of Allah on those who accepted riba and also on those who paid it.

Your question: - Taking a Loan for building a house/buying some property

Taking a loan is not prohibited in Islam, provided one can find someone who would give him a loan without charging him any interest. But taking a loan from a person or an institution for anything, and paying interest on it is strictly forbidden in Islam.

Your question: - Securing a property as guarantee to finance a business

There is no harm if one gives something as a security to take a loan, provided the one who gives the loan does not charge interest on the loan.

Your question: - Opening Letter of Credit and paying interest while conducting Business

There is no harm opening a Letter of Credit, provided one settles the bill as soon as it is due so that there is no interest transaction involved. Paying interest while conducting business or paying interest for anything is forbidden.

Your question: - Credit Card transactions

There is no harm if one uses a credit card, provided the bill is settled as soon as it is due, so that there is no interest transaction involved.

Your Statement: Please elaborate with respect to the current economic situations in the world.

Dear Brother in Islam, it indeed looks difficult, if not impossible to live, work, or function today without being involved in the evil of interest transactions. Whatever the current economic situation in the world, and whatever the system prevailent in the world of finance today; Allah and His Messenger (saws) have declared the taking and paying of ‘riba’ haraam; and if one truly believes in Allah and the Last Day, must strive to keep himself away from it.

The Messenger of Allah (saws) warned the believers that there will come a time when even if one does not directly involve himself in riba, the society will be so engrossed in the evil of ‘riba’, that its vapour will reach him!

Sunan of Abu-Dawood Hadith 3325 Narrated by Abu Hurayrah

The Prophet (peace be upon him) 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.

May Allah make you and us independent of everything, except Him. May Allah help us to come out of this system of ‘riba’. May Allah guide us to read and understand the Holy Quran so that we can keep ourselves aligned to His commandments and guidance. May Allah guide us to the Straight Path of Islam. Ameen.

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