The Garden of Knowledge

بسم الله الرحمن الرحيم

19 Rabi ul Awwal 1447 /12 September 2025

All praise is due to Allah, the Cherisher, Sustainer, Nourisher and Provider of the entire creation. May peace, blessings and salutations be upon our Beloved Prophet Muhammed ﷺ.

Very frequently we come across the statement arguing that the prohibition of riba (interest) is applicable only to those transactions where the interest rates are exorbitant. This argument is supported by the verse in Surah Al-Imran Verse 130:

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوا۟ ٱلرِّبَوٰٓا۟ أَضْعَـٰفًۭا مُّضَـٰعَفَةًۭ ۖ وَٱتَّقُوا۟ ٱللَّهَ لَعَلَّكُمْ تُفْلِحُونَ

“O believers! Do not consume interest, doubled and multiplied; and be mindful of Allah, so you may prosper.”

It is understood by some scholars that it is possible that this verse is the first verse that came with a clear prohibition of riba however it is to be noted that this verse has been qualified with words such as ‘doubled’ and ‘multiplied’ which denotes that riba is forbidden only when the rate of interest is so excessive that the amount payable doubles the principle amount. Logic following this statement would mean that if the interest rate is not high and excessive (as we see today, approx 11.5% in South African banking system) then the prohibition does not apply.

One of the challenges with the above statement is that it overlooks the various verses in the Quran relating to riba and possibly abrogated the understanding of the verse quoted earlier. When dealing with jurisprudence, one cannot look at one verse in isolation. A comprehensive study into the all the verses relating to the subject matter is required by a mujtahid before a ruling is provided. The most detailed verses that deal with riba is found in Surah Al -Baqarah, verse 275 – 281:

ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَـٰنُ مِنَ ٱلْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌۭ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ ۖ وَمَنْ عَادَ فَأُو۟لَـٰٓئِكَ أَصْحَـٰبُ ٱلنَّارِ ۖ هُمْ فِيهَا خَـٰلِدُونَ

“Those who consume interest will stand on Judgment Day like those driven to madness by Satan’s touch. That is because they say, “Trade is no different than interest.” But Allah ﷻ has permitted trading and forbidden interest. Whoever refrains—after having received warning from their Lord—may keep their previous gains, and their case is left to Allah ﷻ. As for those who persist, it is they who will be the residents of the Fire. They will be there forever.” [2,275]

يَمْحَقُ ٱللَّهُ ٱلرِّبَوٰا۟ وَيُرْبِى ٱلصَّدَقَـٰتِ ۗ وَٱللَّهُ لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ

“Allah ﷻ has made interest fruitless and charity fruitful. And Allah does not like any ungrateful evildoer.” [2,276]

إِنَّ ٱلَّذِينَ ءَامَنُوا۟ وَعَمِلُوا۟ ٱلصَّـٰلِحَـٰتِ وَأَقَامُوا۟ ٱلصَّلَوٰةَ وَءَاتَوُا۟ ٱلزَّكَوٰةَ لَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْ وَلَا خَوْفٌ عَلَيْهِمْ وَلَا هُمْ يَحْزَنُونَ

“Indeed, those who believe, do good, establish prayer, and pay alms-tax will receive their reward from their Lord, and there will be no fear for them, nor will they grieve.” [2,277]

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ ٱتَّقُوا۟ ٱللَّهَ وَذَرُوا۟ مَا بَقِىَ مِنَ ٱلرِّبَوٰٓا۟ إِن كُنتُم مُّؤْمِنِينَ

“O believers! Fear Allah ﷻ, and give up outstanding interest if you are true believers.” [2,278]

In the above verse, the words “ما بقى” – ” outstanding (what remains) indicates that every amount over the principle amount has to be given up.

فَإِن لَّمْ تَفْعَلُوا۟ فَأْذَنُوا۟ بِحَرْبٍۢ مِّنَ ٱللَّهِ وَرَسُولِهِۦ ۖ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَٰلِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ

“If you do not, then beware of a war with Allah ﷻ and His Messenger! But if you repent, you may retain your principal—neither inflicting nor suffering harm.” [2,279]

وَإِن كَانَ ذُو عُسْرَةٍۢ فَنَظِرَةٌ إِلَىٰ مَيْسَرَةٍۢ ۚ وَأَن تَصَدَّقُوا۟ خَيْرٌۭ لَّكُمْ ۖ إِن كُنتُمْ تَعْلَمُونَ

“If it is difficult for someone to repay a debt, postpone it until a time of ease. And if you waive it as an act of charity, it will be better for you, if only you knew.” [2,280]

وَٱتَّقُوا۟ يَوْمًۭا تُرْجَعُونَ فِيهِ إِلَى ٱللَّهِ ۖ ثُمَّ تُوَفَّىٰ كُلُّ نَفْسٍۢ مَّا كَسَبَتْ وَهُمْ لَا يُظْلَمُونَ

“Be mindful of the Day when you will all be returned to Allah ﷻ, then every soul will be paid in full for what it has done, and none will be wronged.” [2,281]

In the set of verses mentioned above we find the severity of the prohibition of riba elaborated in detail. With regards to the historical context and placement of this verse, scholars have mentioned that after the conquest of Makkah the Prophet Muhammed ﷺ declared all amounts due in terms of riba to be null and void which meant that no one could claim any interest on loans advanced by him.

Following a combined study on the verses in Surah Baqarah and Surah Al-Imraan, majority of scholars have no doubt that the words ‘doubled’ and ‘multiplied’ are not restrictive in nature and it is not a necessary condition for the prohibition of riba. Scholars have advised that these words were used to refer to the worst practice of riba at the time of revelation.

One of the basic principles to keep in mind regarding the interpretation of the Quran is that the Quran is a book of guidance which contains laws, commandments and embodies expressions that have persuasive value for emphasis. Further to this it is important to understand that the interpretation of the Quran should be based on the explanation provided in the Sunnah (Ahadith) of the Prophet ﷺ.

The Prophet ﷺ mentioned the following in his farewell sermon:,

“Allah has forbidden you to take usury (interest), therefore all interest obligation shall henceforth be waived. Your capital, however, is yours to keep. You will neither inflict nor suffer any inequity. Allah has Judged that there shall be no interest and that all the interest due to Abbas ibn ‘Abd’al Muttalib (Prophet’s uncle) shall henceforth be waived.”

Abdullah ibn Masud (R.A) makes mention in a Hadith:

لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَهُ وَكَاتِبَهُ‏.‏

The Messenger of Allah ﷺ cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it. [Sunan Abi Dawud 3333] [Sahih Muslim 1597].

The Messenger of Allah ﷺ said:

كل قرض جرّ نفعاً فهو ربا

“Every loan that derives benefit (to the creditor) is riba” – Musnad Harith bin Abi Usaamah, 201

There are numerous hadith which speak about the prohibition of riba however we would not discuss each of them

Based on the discussion above, the argument that the prohibition of riba applies only to excessively high interest rates is unfounded and not supported. Both the Quran and Sunnah clearly indicate that any additional amount to the principal, no matter how small, is regarded as riba.

May Allah ﷻ accept our efforts from us and grant us understanding In Sha Allah!

References:

• Mufti Muhammad Taqi Usmani; The Historical Judgement on Interest
• Tafsir Ibn Kathir
• Tafsir An Nasafi
• Tafsir Qurtubi