Surah Al-Baqara (2) — Ayah 275

275. 1. The literal meaning of رِبَوا is increase and addition, and in Shariah its application is to رِبَا الفَضْلِ and ربا النسیئۃ. ربا الفضل refers to that interest which occurs in six items due to disparity or due to cash and credit (the details of which are in the hadith). For example, when exchanging wheat for wheat, it is commanded that, firstly, it should be equal in quantity, and secondly, it should be hand to hand. If there is any disparity, or if instead of being hand to hand, one is cash and the other is credit, or both are credit, then it is also interest. ربا النسیئۃ means giving someone (for example) one hundred rupees for six months on the condition that the repayment will be one hundred and twenty-five rupees. Twenty-five rupees are given for the six months' respite. In the statement attributed to Hazrat Ali (may Allah be pleased with him), it is described as: "کل قرض جر منفعۃ فھو ربا" (Fayd al-Qadir Sharh al-Jami' al-Saghir, vol. 5, p. 28) (Any benefit derived from a loan is interest). Whether this loan is taken for personal need or for business, interest on both types of loans is forbidden. And even in the age of ignorance, both types of loans were prevalent. Shariah, without any distinction, has declared both absolutely forbidden. Therefore, some people say that commercial loans, which are generally taken from banks, the addition on them is not interest because the borrower benefits from it, a part of which he returns to the bank or lender, so what is wrong with that? This wrong is not visible to those modernists who declare it permissible, otherwise, in the sight of Allah, there are great evils in it. For example, the profit of the one who takes a loan for business is not guaranteed; in fact, not only is profit uncertain, but even the protection of the principal amount is not guaranteed. Sometimes, the entire amount is lost in business, whereas, on the contrary, the profit of the lender (whether it is a bank or a moneylender) is fixed, and its payment is obligatory in every case. This is a clear form of oppression, which the Islamic Shariah can never declare permissible. Moreover, Shariah encourages the believers to spend on the needy of society without any worldly motive or benefit, which promotes brotherhood, sympathy, cooperation, and feelings of kindness and love in society. On the contrary, the system of interest promotes hard-heartedness and selfishness. A capitalist is only concerned with the profit from his capital, whether the needy in society are groaning from illness, hunger, poverty, or the unemployed are fed up with their lives. How can Shariah approve of such cruelty and hard-heartedness? There are many other harms as well, but there is no room for detail here. In any case, interest is absolutely forbidden, whether it is interest on a loan taken for personal need or on a commercial loan.

275. 2. This condition of the usurer will be at the time of rising from the grave or in the field of resurrection.

275. 3. Whereas in trade, cash and goods are exchanged, and there is a possibility of profit and loss, whereas in interest, neither of these exists. Moreover, Allah has declared sale lawful and interest unlawful, so how can the two be the same?

275. 4. After acceptance of faith or repentance, there will be no accountability for previous interest.

275. 5. That he remains steadfast on repentance or, due to evil deeds and corruption, he is left at the mercy of circumstances. Therefore, after this, there is a warning of punishment for the one who again takes interest.