Riba is not the Solution

Thursday, May 5th, 2011 | Posted by Syawal

This article is an attempt to discourage participating in riba for the temporary satisfaction of acquiring worldly gain at the expense of the Hereafter. Gains acquired through using riba far outweigh the advantages of using riba as the means to accomplish one’s objectives. The dangers of riba may not be apparent or it may seem that the harm will be avoidable at the time a transaction is made, but it is perilous to lose sight of the fact that Allah (swt) has declared engaging in riba to be a major sin and the consequences of disregarding the warning of the Lord and Master of the Day of Judgment are far beyond the limited vision and intellect of human beings.

Riba, interest, or usury, is a forced “increase of value” in “the medium of exchange” that places extra liability on a party when something is loaned or swapped. Interest is an institutionalized way to take unfair advantage of those in need, and is against the natural concern humans have for the well being of others. Islam’s teachings on abolished usury more that 1400 years ago in most parts of the world that flourished under Islamic government.

“(Because) of their taking usury when they were forbidden it, and of their devouring people’s wealth by false pretenses We have prepared for those of them who disbelieve a painful doom.” (TMQ 4:160-161)

“Those who devour usury will not stand except as stands one whom the Evil One by his touch has driven to madness. That is because they say, ‘Trade is like usury,’ but Allah has permitted trade, and forbidden usury. Those who after receiving direction from their Lord desist, shall be pardoned for the past, their case is for Allah (to judge). But those who repeat (the offense) are Companions of the Fire. They will abide therein (for ever). Allah will deprive usury of all blessing, but will give increase for deeds of charity; for He loves not Creatures ungrateful and wicked.” (TMQ 2:275-277)

Obedience to the laws of Allah is the foremost reason why riba is to be avoided. In the Glorious Qur’an and the Sunnah, there is sure guidance for avoiding that, which is dangerous and harmful for the individual and the society, and they (Qur’an and Sunnah) give clear direction to the path toward that which makes one successful in this world and in the Hereafter.

As compared to other prohibitions, it may be viewed that Allah (swt) has condemned riba with the harshest of punishments –war with Allah Almighty and the Holy Prophet (saw) has been declared for those who participate in riba-

“O you who believe! Remain conscious of Allah, and give up all outstanding gains from usury, if you are [truly] believers; for if you do it not, then know that you are at war with Allah and His Messenger. But if you repent, then you shall be entitled to [the return of] your principal; you will do no wrong, and neither will you be wronged.” (TMQ: 2:278-279)

Prophet Muhammad (saw) also said:

“The sin of taking riba has 70 parts and the smallest part of the same is equivalent to marrying one’s mother.”

Whether it is a home loan, car loan, installment loan, student loan, Pay Day loan, credit card, or it’s a 401K, IRA, life insurance, 529 Education Savings account, CDs, Bank Savings account or many other kind of financial instruments, Muslims should know that these things are all interest bearing and in violation of the Shari’ah rule on riba. From the time of the Prophet to the present day, the overwhelming majority of Muslims, both scholars and laymen, have regarded usury and interest, both as riba. It has been concluded by a number of respectable economists, riba is the prime cause of inflation in an economy.

One has only to look pass the glitter and stop being dazzled by the temporary pleasures of America and see the devalued dollar and a suffering economy. America has a key position in the world economic system, which is based on riba. Riba is usually translated as usury, which is the lending of money on interest regardless of the rate of interest. But the definition of riba in Islam also includes transactions that are based on deception that give to the receiver a profit or gain to which he is not justly entitled. As revelations came to Prophet Muhammad (saw) for the establishment of the Islamic way of life, the first verse revealed prohibiting riba came during the Makkan period.

“That which you give in usury in order that it may increase on (other) people’s property hath no increase with Allah; but that which ye give in charity, seeking Allah’s countenance, hath increase manifold.” (TMQ 30:39)

The second verse of the Qur’an revealed on riba is considered to have come after the battle of Uhud in which seventy Muslim men returned to Allah during the battle when a portion the army disobeyed the orders of Rasulallah (saw). It reads,

“O you who believe! Devour not usury, doubling and quadrupling (the sum lent). Observe your duty to Allah, that ye may be successful.” (TMQ 3:130)

The desire for this world and love of it can be blinding to the eyes and the heart in deciding what is truly needed. Of the disbelievers who claim that they believe,

“There are some people who say, “We believe in Allah and the Last Day,” whereas they really do not believe. They try to deceive Allah and the Believers, but they succeed in deceiving none except themselves, and they realize it not. In their hearts is a disease which Allah has increased all the more, and a painful doom is in store for them for the lie they utter.” (TMQ 2:8-10)

The disease of the heart is the love of other than Allah (swt). One might lie to himself about what he must have in order to live, thus deceiving himself and others, but not the All Knowing, and All Aware Lord of all the worlds.

There is the principle of Islamic jurisprudence, which states: “When the evidences of prohibition conflict with the evidences of permissibility, preference is given to prohibition”. Islam guides one to make Allah the goal in all situations, therefore, in all transactions the aim must be to close the door to the possibility of becoming involved in anything that Allah (swt) has warned humanity against. An-Nu`man bin Bashir (may Allah be pleased with him) said that he heard the Messenger of Allah (saw) say:

“What is lawful is evident, and what is unlawful is evident, and in between them are the things doubtful which many people do not know. So he who guards against doubtful things keeps his religion and honor blameless, and he who indulges in doubtful things indulges in fact in unlawful things. Just as a shepherd who pastures his animals round a preserve will soon pasture them in it. Beware, every king has a preserve, and the things God has declared unlawful are His preserves.” (Muslim)

For those who believe in the guidance of the Qur`an and the teaching of Prophet Muhammad (saw), the goal must not be to find ways to fit into the current economic system and to use a little riba – the goal must be to live the life of a Muslim and work to revive the Islamic economic system, which can only be done with the establishment of the Islamic State.

The Vatican offered Islamic finance principles to western banks as a solution for the worldwide economic crisis, according to the following statement – “The Vatican’s official newspaper, ‘L’Osservatore Romano, reported that Islamic banking system may help to overcome global crisis. ‘The ethical principles on which Islamic finance is based may bring banks closer to their clients and to the true spirit which should mark every financial service, Turkish media reported, ‘The Vatican said banks should look at the ethical rules of Islamic finance to restore confidence amongst their clients at a time of global economic crisis.’”

Immediately after the verses on riba Allah (swt) gives the undeniable warnings about riba comes of the last revelation to Prophet Muhammad (saw), according to Ibn `Abbaas (may Allah be pleased with him), which gives this call to faith:

“And be conscious of the Day on which you shall be brought back unto Allah, whereupon every human being shall be repaid in full for what he has earned, and none shall be wronged.” (TMQ 2:281)

In his sermon during his Farewell Pilgrimage the Prophet (saw) reportedly said: “All riba of the pre-Islamic period are null and void. The first riba I am canceling is that of Abaas Ibn `Abdul al-Muttalib.” Prophet Muhammad, (saw) succeeded in establishing a way of life that brought humanity out of all forms of darkness into the light of Islam. Humanity came into the worship of Allah, the Creator, Lord of the worlds and Master of the Day of Judgment alone and learned to obey Him in all aspects of life. Out of obedience to Allah (swt) the Prophet (saw) and his followers established a model government that enforced the divine prohibition of riba (usury or lending and borrowing money on interest) and maintained the integrity of money as a means of exchange. In addition, he (saw) enforced a penal code that gave deterrent punishment to those found violating the rights of others. Yet, after living under the prosperity of Islam, greedy and unscrupulous business practices that were contrary to Allah’s decree were adopted, and Muslims abandoned Islamic economic principles. As a result people throughout world today are living under the oppression and tribulations of riba based societies. Muslims are obligated to revive Islam and obedience to Allah (swt) as a way of life.

Source: www.aljunnah.com