The meaning of usury is: 'Taking money or profit on a loan.' For example, a loan of 1000 rupees is given to someone and the party is bound to pay 1500 rather than 1000, will count as interest. Taking any benefit other than money from the debtor by giving a loan is also usury. For example, someone gave loan to a party and took his house from him and started to live in that house but did not pay his rent or gave rent but paid less, this is a form of usury. Borrowed grain etc. from someone, but when returned, returned more than what was borrowed, this is also usury. Like if someone borrowed 5 kg wheat but when he returned, it was 6 or 7 kg in return, this is also a form of usury.
Usury is absolutely forbidden in Islam, because it is a curse that leads to free eating, greed, selfishness, heartlessness and cruelty. Usury is also a source of financial and economic disasters. It is for this reason that usury is prohibited in the Holy Quran.
Translation:
''O you who believe, do not eat up the amounts acquired through riba (usury or interest), doubled and multiplied. Fear Allah, so that you may be successful.'' (Surah Al-Imran: 130)
Allah has declared buying and selling as halal and permissible, while usury is forbidden.
Allah Almighty says:
Translation:
''Allah has permitted sale, and prohibited riba.'' (Surat Al-Baqarah: 275)
In the Holy Quran, usury has been described as equivalent to war with Allah and His Messenger. Even though usury appears to increase wealth, but in reality it causes loss of wealth, unhappiness, and untold calamities. Allah Almighty eradicates usury and increases charity. Usury is not only a loss in this world, but also in the hereafter, the person who eats usury will be disgraced.
Usury has always been illegal in every religion, including Judaism and Christianity, even the polytheists of Makkah considered it haram. The usurious economy can never develop. The Holy Prophet has described the smallest sin of usury as equivalent to adultery. The Messenger of Allah (Jesus) has also cursed the person who takes interest, gives interest, writes or witness it. In order to promote easy transactions for the goods of daily use, Prophet Muhammad prohibited the lending and addition of six things: gold, silver, wheat, barley, dates and salt. It is called Raba-ul-Fazl.
The Messenger of Allah, said: The night I was taken (to the Ascension), I passed by a group whose bellies were as big as houses. Snakes could be seen from the bellies of these people. The Holy Prophet said: Jibrael! Who are these people? Jibrael said that they are usury eaters. (Sunan Ibn Majah: 2273)
One of the reasons of prohibition of usury is that the society cannot progress due to this evil and wealth starts accumulating in a few hands. The wealth of the rich increases but on the other hand, poor become more miser and miserable.
As the custom of usury becomes common, people stop working. They invest their money in interest based transactions, due to which investment in industries and factories decreases, thus not only unemployment increases but also the wheel of national development also gets jammed. When the burden of debt increases due to the interest on the debtor, he either commits a crime or commits suicide. Due to usury matters, fights and murders become a common practice of every day.
Allah has declared usury to be forbidden. But He has given permission to earn profit through trade, job, agriculture, industry and other halal means. If a person wants to earn profit by investing his wealth in a halal investment, then it is not prohibited. Buying and selling of halal things is allowed and business is allowed in them on the basis of profit and loss according to the law. The great virtues of trade have been described, an honest merchant has been told the good news of high ranks on the Day of Resurrection.
It is a very virtuous thing to lend money to a person in a state of need and urgency. A loan that is given without interest to meet the needs of a person for the sake of Allah is called Qarz-e- Hasna. Like charity, Qarz-e-hasna is also a virtue. The money given in Sadaqah is not taken back, while in Qarz-e-Hasna, that money is taken back.
The Holy Prophet said: On the night of Ascension, I saw a writing on the gate of Paradise that the one who gives charity will be rewarded ten times and the one who lends money will be rewarded eighteen times. (Sunan Ibn Majah: 2431)
It was the habit of Hazrat Umar Farooq that he would give someone a loan, and when he would come to repay it, he would forgive him. When he was questioned about it, he answered: First I lend money and get the reward of a lender and then I waive it off as charity so I also cherish the reward of charity.
We should always earn halal wealth in our life, the food in our stomach should also be halal and the clothes on our body should be only from halal wealth. Allah Almighty has placed blessings and peace in halal wealth. Illegally earned wealth is not only a source of restlessness, trouble and unblessing in this world, but also in the Hereafter it will be severely accounted for.
