4 Stages of the Prohibition of Riba in the Qur'an

Riba, or interest, is considered detrimental to both society and individuals. Islam encompasses many aspects of daily life, including financial matters.

One of the profound teachings of the Quran is the prohibition of riba practices. Riba is considered a sinful act that Allah SWT condemns.

Understanding Riba

The term "riba" originates from Arabic and etymologically signifies addition (azziyadah), growth (an-numuw), increase (al-'uluw), and augmentation (al-irtifa').

4 Stages of Riba Prohibition according to the Quran

References to riba are mentioned seven times in the Quran, namely in Surah Al-Baqarah verses 275, 276, 278, and 279, Surah Ar-Rum verse 39, Surah An-Nisa verse 61, and Surah Al-Imran verse 130.

In the Quran, the prohibition of riba is elaborated in several stages, guiding Muslims to lead financially sound lives under Sharia principles.

1. Advice that Allah SWT does not favor those who engage in riba (Surah Ar-Rum verse 39)

At this stage, Allah SWT provides insight into the negative aspects of riba. Although engaging in riba transactions may provide additional value, it ultimately lacks blessings and approval from Allah SWT.

Unlike Zakat, which may reduce wealth but brings blessings (rewards) and draws one closer to Allah SWT. Allah SWT says:

وَمَآ اٰتَيْتُمْ مِّنْ رِّبًا لِّيَرْبُوَا۠ فِيْٓ اَمْوَالِ النَّاسِ فَلَا يَرْبُوْا عِنْدَ اللّٰهِۚ وَمَآ اٰتَيْتُمْ مِّنْ زَكٰوةٍ تُرِيْدُوْنَ وَجْهَ اللّٰهِ فَاُولٰۤىِٕكَ هُمُ الْمُضْعِفُوْنَ

"And whatever you give for interest to increase within the wealth of people will not increase with Allah. But what you give in zakah, desiring the countenance of Allah - those are the multipliers." (Q.S Ar-Rum verse 39)

2. Riba is depicted as something harmful (Surah An-Nisa' verses 160-161)

At this stage, Allah SWT expresses a stronger rejection of riba, illustrated through the story of the Jews. Although not directly stating the prohibition for Muslims, it serves as a warning against repeating the mistakes of past generations.

This emphasizes that riba has existed since the time of Jahiliyyah and persists to this day, with consequences felt in the Hereafter. Allah SWT states:

بِظُلْمٍ مِّنَ الَّذِيْنَ هَادُوْا حَرَّمْنَا عَلَيْهِمْ طَيِّبٰتٍ اُحِلَّتْ لَهُمْ وَبِصَدِّهِمْ عَنْ سَبِيْلِ اللّٰهِ كَثِيْرًاۙ ۝١ وَّاَخْذِهِمُ الرِّبٰوا وَقَدْ نُهُوْا عَنْهُ وَاَكْلِهِمْ اَمْوَالَ النَّاسِ بِالْبَاطِلِۗ وَاَعْتَدْنَا لِلْكٰفِرِيْنَ مِنْهُمْ عَذَابًا اَلِيْمًا ۝١

"For wrongdoing on the part of the Jews, We made unlawful for them [certain] good foods which had been lawful to them, and for their averting from the way of Allah many [people]" (Q.S. An-Nisa verses 160)

"And [for] their taking of usury while they had been forbidden from it, and their consuming of the people's wealth unjustly. And We have prepared for the disbelievers among them a painful punishment." (Q.S. An-Nisa verse 161)

3. Riba is prohibited by associating it with multiplied increments (Surah Al-‘Imran verse 130)

Increments in the form of riba entail injustice and oppression, leading to accumulating debts that burden one party and benefit another.

يٰٓاَيُّهَا الَّذِيْنَ اٰمَنُوْا لَا تَأْكُلُوا الرِّبٰوٓا اَضْعَافًا مُّضٰعَفَةًۖ وَّاتَّقُوا اللّٰهَ لَعَلَّكُمْ تُفْلِحُوْنَۚ

"O you who have believed, do not consume usury, doubled and multiplied, but fear Allah that you may be successful." (Q.S Al-‘Imran verse 130)

4. Allah explicitly and decisively prohibits any form of increments derived from loans (Surah Al-Baqarah verses 278-279)

Allah SWT guides the certainty of the prohibition of riba, categorizing it as forbidden. Even Allah and His Messenger declare war against the perpetrators of riba, regardless of its form or magnitude.

This is because it is feared to lead to injustice, as increments taken from loans are a form of oppression against the weaker parties.

يٰٓاَيُّهَا الَّذِيْنَ اٰمَنُوا اتَّقُوا اللّٰهَ وَذَرُوْا مَا بَقِيَ مِنَ الرِّبٰوٓا اِنْ كُنْتُمْ مُّؤْمِنِيْنَ O فَاِنْ لَّمْ تَفْعَلُوْا فَأْذَنُوْا بِحَرْبٍ مِّنَ اللّٰهِ وَرَسُوْلِهٖۚ وَاِنْ تُبْتُمْ فَلَكُمْ رُءُوْسُ اَمْوَالِكُمْۚ لَا تَظْلِمُوْنَ وَلَا تُظْلَمُوْنَ

"O you who have believed, fear Allah and give up what remains [due to you] of interest if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged." (Q.S. Al-Baqarah verses 278-279)

Also Read: Sharia Investment: Riba Free Financial Solutions

Say "NO" to Riba

In Islamic teachings, riba or interest is considered harmful to society and individuals. The Quran provides deep insights into the prohibition of riba and highlights its injustices and negative impacts, both individually and socially.

Allah SWT decisively prohibits riba through various stages in the Quran and emphasizes that such actions will face His condemnation. In this context, Muslims are urged to lead financially sound lives under Sharia principles, to avoid riba, and to follow the guidance of Allah SWT, ensuring blessings and justice in financial transactions.

By understanding and embodying the teachings of the Quran regarding the prohibition of riba, Muslims are expected to develop financial mindsets and behaviors aligned with Sharia values, fostering prosperity, and justice, and attaining the pleasure of Allah SWT.