Opinion about today’s interest-based banks
The matter of usury (interest) is absolutely clear; there is no doubt about its existence and prohibition. The Quranic verses, Sunnah, and consensus of scholars all indicate this. Usury is a great sin and unanimously declared forbidden. Allah Almighty has stated this in the Holy Quran:
«الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا ۗ وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا»
“Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, ‘Trade is [just] like interest.’ But Allah has permitted trade and has forbidden interest.”
He also said:
«يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ»
“O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers.”
The Messenger of Allah (peace be upon him) cursed those who consume usury, those who give it, those who write it down, and those who witness it, and said, “They are all equal.”
Therefore, it becomes obligatory for a Muslim to avoid usury; neither to engage in usurious transactions nor to be a partner in them. The mere existence of something among people is not proof of its permissibility. Both good and evil exist; it is obligatory to choose good and necessary to avoid evil. The existence of evil is not proof of its permissibility; rather, it must be avoided.
