The Usurer Does Not Place Trust in Allah

Another misfortune of the usurer is that he loses trust in Allah. He does not pray to Allah to give him 'Barakat'. All his hopes are pinned upon the interest that he collects from his debtors and this is polytheism as discussed in the section on 'Shirk'.

Another point to be noted is that in normal business there is a possibility of both gain and loss. So the businessman not only puts in sincere efforts but prays to Allah for success and profit in his endeavour. An usurer has no fear of loss and feels no intuitive need to pray to Allah for his 'Rizq'. He is thus deprived of an important facet of religion.

The Reward of Giving a Loan is More than that of Sadaqah

One who takes interest is deprived of the rewards that are prescribed for giving a goodly loan. If there are ten merits in giving Sadaqah, the interest-free loan has eighteen merits. An interest-free loan is therefore more rewarding than Sadaqah in the way of Allah. A person who gives respite to his debtors and does not take interest is given a reward that is equivalent to charity of the said amount every day for the number of days that he extends. It is evident that the usurer does not qualify for such rewards. In fact he is afflicted with miserliness and greed, which only increase day by day. Surely the result of miserliness and greed is Hell.

The Fate of the Usurer

We have already seen from the verses of the Holy Quran, the sayings of our Holy Prophet (s.a.w.s.) and of our Imams (a.s.) that the punishment for usury in more severe than that of other sins. We have also discussed the reasons for this. Islam classifies usury as the greatest of the Greater Sins and its punishment is the severest of all punishments. If the usurer does not repent for his acts, his end will be with the disbelievers and those whose eternal abode is Hell. The usurer shall never be released from Hell.

"To whomsoever then the admonition has come from his Lord, than he desists, he shall have what has already passed, and his affair is in the hands of Allah, and whoever returns (to it) these are the inmates of the fire, they shall abide in it." 
(Surah Baqarah 2:275)

However there are certain ways to compensate for this sin and pray for forgiveness. Certain sinful acts are forgiven by just repenting sincerely. If a Polytheist repents for his sins and becomes a Muslim, a great sin like 'Shirk' is forgiven. He does not have to do anything more than that. But there are some sins that require compensation in addition to sincere repentance i.e. like the one who has Qaza prayers and fasts. Along with repentance he must perform all the prayers and observe all the fasts due on him. Similarly in the case of interest, the penitent should give back the amount that he has taken as interest from his debtors.

No Barakat in Interest

The above Quranic Ayat continues: 
"Allah does not bless usury, and he causes charitable deeds to prosper, and Allah does not love any ungrateful sinner." 
(Surah Baqarah 2:276)

Charity spreads peace, promotes beneficence and love in society, whereas usury destroys peace and hardens the hearts of the people.

When usury spreads its roots in society, people have no hesitation in usurping each other's rights. They are only driven by a feeling of enmity, hatred and a passion of revenge. A society devoid of harmony and co-operation cannot progress, it destroys itself with its own corruption. Charity and Sadaqah on the other hand promote feelings of friendship, love and brotherhood. An atmosphere of peace and prosperity prevails which inspires people to further good deeds.

War With Allah and the Holy Prophet (s.a.w.s.)

The Noble Quran says, 
"O You who believe! Be cautious of (your duty) to Allah and relinquish what remains (due) from usury, if you are believers. But if you do (it) not, then be appraised of war from Allah and His Apostle..." 
(Surah Baqarah 2:278-279)

The proof of one's belief is in obedience of Divine orders. The same verse continues, 
"...And if you repent, then you shall have your capital, neither shall you make (the debtors) suffer loss, nor shall you be made to suffer loss." 
(Surah Baqarah 2:279)

One who does not obey this command must be prepared for war with Allah and His Prophet (s.a.w.s.).

Tafsir Minhajus Sadeqeen gives an explanation of this verse. It could mean that the severity of the sin of usury is such that if in this world a usurer were to come face to face with the Holy Prophet (s.a.w.s.), the Prophet's (s.a.w.s.) sword would be against him and the Prophet (s.a.w.s.) would be prepared to fight him. In the Hereafter the fire of Hell shall keep him in torment by the order of Allah. The usurer must be fought till he submits to the Divine orders and refrains from taking usury. Traditional reports state that after the revelation of this verse, the Holy Prophet (s.a.w.s.) informed the Commissioner of Makkah that if the tribe of Bani Mughaira does not desist from taking usury, they must be fought against.

The Holy Prophet (s.a.w.s.) also said inter alia in a sermon at Makkah: "Know that the usury which has been accumulated in the period of ignorance is now condoned completely. First of all I condone the interest (that is upon your neck) of (my uncle) Abbas Ibne Abdul Muttalib." 

Traditions Denouncing Interest

It is reported from Hazrat Imam Ja'far as-Sadiq (a.s.): 
"Taking a Dirham as interest is worse in the eyes of Allah than doing illegal intercourse with Mehram women." 
(Al Kafi)

Imam Ali (a.s.) says:
"The Holy Prophet (s.a.w.s.) has cursed one who accepts interest, one who pays interest, one who buys interest, one who sells interest, one who writes the contract of interest and one who is the witness of this transaction."
(Wasaelush Shia)

Ibne Baqeer relates that Imam Ja'far as-Sadiq (a.s.) was informed about the person who took interest and considered it as permissible as mother's milk. Imam (a.s.) said: 
"If Allah gives me power over this man, I would strike off his head." 
(Al Kafi)

It is clear that to consider interest Haraam is an article of faith. One who disregards this and says that interest is not Haraam becomes an apostate. The Imam (a.s.) can also have him killed.

Interest is Denounced in the Holy Quran

Samaa says that he asked Imam Ja'far as-Sadiq (a.s.) as to why Allah has mentioned the illegality of usury at various places. Imam (a.s.) replied: 
"So that people may not forgo acts of charity (like giving interest-free loans)." 
(Wasaelush Shia)

Imam Baqir (a.s.) said:
"The worst transaction is that which involves interest." 
(Wasaelush Shia)

The Sinner is Deprived of Religious Faith

Zurarah says that I asked Imam Ja'far as-Sadiq (a.s.) concerning the Quranic verse: 
"Allah does not bless usury, and he causes charitable deeds to prosper..." 
(Surah Baqarah 2:276)

And added: 
"But I see that wealth of usurers goes on increasing?"

Imam (a.s.) replied, 
"What could be a greater loss? That in return of a Dirham of interest he loses his faith. And if he repents of his deeds in the world all his wrongfully earned wealth comes to an end and he becomes a destitute." 
(Wasaelush Shia)

The Belly of the Usurer Shall Be Filled With Fire

The Holy Prophet (s.a.w.s.) says, 
"One who takes interest, his belly shall be filled with an equal quantity of fire by Allah. If he has earned more from the interest money, Allah will not accept any of his deeds. And till even a grain of interest remains with him, Allah and his angels will continue to curse this man."
(Mustadrakul Wasael)

Punishment of Usurers in the Barzakh

The Holy Prophet (s.a.w.s.) has also stated:
"On the night of ascension (Meraj) I saw some people trying to stand up but did not succeed because of their huge bellies, I asked, O Jibraeel, who are these people?"

Jibraeel replied, "They are those who have taken usury. Now they can only stand up like those who have been possessed by the Devils."

The Prophet (s.a.w.s.) continues, 
"Then I saw them herded upon the path of the followers of Firon. Seeing the extreme heat of the fire they exclaimed. O God! Then when will be Qiyamat?" (It is clear that the fire mentioned in the tradition is of the punishment of Barzakh).

Usurers Under the Feet of Firon

In another tradition it is said that when these people saw the followers of Firon they tried to get up and run away. But due to overlarge bellies they could not rise up and consequently the followers of Firon trampled them under their feet and moved on.

It is narrated from the Holy Prophet (s.a.w.s.) that he said:
"When adultery and interest becomes common in a town the angels are given permission to destroy its inhabitants."

Another Prophetic tradition in the same vein says:
"When the people of my Ummat start taking interest, tremors and earthquakes will be frequent." 
(Mustadrakul Wasael)

Usury is Worse Than Adultery

The Noble Messenger of Allah says: 
"If a man commits adultery with his mother in the Holy Kaaba this act shall be seventy times lighter than the act of usury." 
(Wasaelush Shia)

Imam Ja'far as-Sadiq (a.s.) says: 
"In the eyes of Allah, taking one Dirham of interest is worse than thirty incestuous acts."
(Wasaelush Shia)

A previous tradition describes this sin to be seventy times more than adultery. There is one more report where taking a Dirham is equated with twenty such acts. 
(Wasaelush Shia)

Even in today's world, the scourge of interest has spread to such a magnitude that economies are on the verge of collapse. Some economists say that interest is necessary for development. If this had been true then Islam would not have prohibited it. At the present time there are two schools of economics whose ideology is not based on interest. One is Communism and the other Islam. Whereas the foundation of imperialist economy is based upon interest. Even the Communist and the Islamic schools of economies differ greatly.

Unlike the Communists, Islamic government has never felt the compulsion to accept interest as inevitable, in order to fit the logistics of economy. And yet, Islamic economy is not known to have weakened because it does away with interest.

Yes, it is a necessity for the few selfish and greedy people who wish to add to their already enormous wealth, by increasing the miseries of the poor and the destitute. Their aim is to enslave the deprived people. We are well aware of the logic of these hoarders.

Loan On Interest

A loan on interest is one whereby a person lends something with the precondition that it would be returned with fixed increment at a fixed time. The loan given may be money or any other article, say, one loans five Mounds of rice and expects to get back six Mounds. The increment demanded may be in the form of cash or kind, labour or even a favour.

For example, one may lend money with the condition that the borrower will return the money and also carry out some household chores for him. Or a lender may lend a sum of money for a year and in return stay in the house of the borrower for a year without paying any rent. Or a person may give gold as a loan and expect the borrower to make some jewellery free of cost. Whatever is taken in excess of what was given, irrespective of its form, is interest and is Haraam. Also it does not matter whether such conditions for giving loan were stated in the beginning or decided later. It is Haraam in any case.

Some Important Points

1) A transaction involving interest is Haraam. Charging interest is Haraam and paying interest is Haraam too. So if the borrower takes money on interest and uses it and earns some profit, the actual owner of the profit is the lender. For example, if he borrows some wheat and plants a crop, the crop that grows from this, rightfully belongs to the lender. However, if the lender has agreed that his loan can be utilised in such a manner, then the profit from it is the right of the borrower.

2) If one gives an amount to a trader with the understanding that he can return a lesser amount, it is permitted. For example, he gives a thousand Tumans to a trader in Shiraz and agrees to take nine hundred and ninety Tumans in Tehran, he is allowed to do so. This type of transaction is knows as 'Sarf-e-Baraat', since there is no involvement of interest.

3) If at the time of disbursement of the loan there had been no mention of interest and the loanee wishes to return the loan amount with an increase out of his own wish, it is not Haraam. In fact it is Mustahab. It is also Mustahab to repay the loan, if possible, before its due-date or before the lender demands it. It is also Mustahab for the debtor that when repaying the loan he should add something to it with the intention of giving it as a gift to the creditor. But the intention must be of 'gift'. It must not even remotely be thought of as interest. Similarly, it is Mustahab for the creditor to accept whatever extra is given to him as a gift, not think of it as an interest, and accept it as a goodwill.

Transaction Involving Interest

If any of the following conditions are present in a transaction, it becomes a transaction of interest, and is Haraam:
1) Whatever is taken and whatever is given back are of the same material but the quantities are unequal. Or if the quantities are equal, there is disparity in quality etc.

2) When only one standard of measure and weight is employed, the amount taken and given back is of unequal measure or weight. However, at the time of borrowing if the measure of weight is kilogram but while returning it, it is Seer or Pound it is allowed. In the same way whatever was taken by the unit of measurement as metre and returned by the units of measurement as foot or yard, is valid too.

In the same way it is Haraam for a person to lend one Mound of wheat for a month and in return borrow one mound of wheat for two months from the same person. Even though the quantity is the same, the transaction is Haraam because time is also a significant factor.

Three Important Points

1) In the matter of interest, wheat and barley are considered equivalent. Then if one gives a Mound of wheat and takes one and-a-half Mound of barley, it is interest, and thus Haraam.

Similarly, whatever constitutes the same basic material is regarded as equivalent. As an analogy one may think of the roots, branches and leaves of a tree as equivalent. For example, milk and curd are equivalent, grape-vinegar and grapes are equivalent, sugar and sugarcane are equivalent too. All these have to be loaned and given back in equal quantity or it will constitute interest and will be Haraam.

2) If a person gives one Mound of wheat and a handkerchief and takes back one and-a-half Mound of wheat, it does not constitute interest and is not Haraam. In this transaction one Mound of wheat shall be considered in lieu one Mound of wheat that is returned. And the remaining half a mound of wheat shall be in the lieu of the handkerchief. It is also possible that a person may give one Mound of wheat and a handkerchief and take back one Mound of wheat and some other article, for example, soap. In this way too he has not committed usury.

3) If a person first sells one Mound of his wheat for two Tumans and later purchases one and a half Mound of wheat for two Tumans, it is permitted. Since both these transactions are separate. It does not constitute usury.

It may be possible that Zaid sells a Mound of wheat to Khalid, and Khalid gives half a Mound of his wheat to Zaid as a gift. This is also permitted.

When taking interest is permitted

There are three types of people between whom the taking and giving of interest is allowed:
(1) Father and son: The father and son can enter into a transaction of interest. But a transaction of interest between mother and son is Haraam.

(2) Husband and wife: The husband and wife can charge interest from each other. For example one of them gives a hundred rupees and demand one hundred and fifty rupees in return. It is permitted.

(3) The Kafir who is not staying in an Islamic country: A Muslim can take back more but he cannot give him more. As far as the Zimmi Kafir (one who is staying in an Islamic country) is concerned it is Haraam to enter into a transaction of interest with him. Taking and giving of interest both are Haraam in this case.