Definition, Effect and Ruling of Work That Helps With Riba
Question:
1. Definition of riba and ruling on work that helps with riba. What is the definition of riba? If we take into account the fact that in most countries the economy is based on the principle of the circulation of capital, which includes lending, is accepting payment in that particular currency for any work regarded as an action that supports the riba-based system? Is using the currency of a state that is based on riba regarded as contributing to the usurious economy? Undoubtedly the employee in a riba-based bank plays a part in riba-based transactions one way or another, even if he is a security guard for the bank. Could you offer him a better job if you have anything to offer?
2. Harmful Effect of Riba. Why is Riba (Usury) forbidden? I need a convincing answer to give it to some of my brothers in town.Jazakum Allah alf Khair
3. How if regarding the Practice of riba as permissible. What is the ruling on regarding riba as permissible? Thank you very much.
1. Praise be to Allah. Riba means an increase in a particular item. The word is derived from a root meaning increase or growth. Allah, may He be exalted, says (interpretation of the meaning): “Whatever you pay as interest so that it may increase (li yarbu) the wealth of people does not increase (fa la yarbu) in the sight of Allah” [QS Ar-Room 30:39]., i.e., it does not increase or rise in status before Allah.
Riba originated among the people of the Jaahiliyyah; if a debt became due, they would say to him (the borrower): Give us one hundred (that is due, now), or increase it to one hundred and fifty (and pay later). Then when the one hundred and fifty became due, they would say: Give us one hundred and fifty (now), or increase it to two hundred (and pay later) -- and so on.
Islam also forbade another kind of riba, namely riba al-fadl, which means adding to the amount when exchanging one item for another of the same type. So if gold is sold for gold, that is not permissible except like for like, hand to hand. Islam stipulated that the exchange should be done hand to hand and that the items or goods should be of the same quality. Whoever gives more or asks for more has engaged in riba. If he sells a saa‘ of wheat for two saa‘s (of the same commodity), even if it is hand to hand, he has engaged in riba.
The principle of the circulation of capital exists in both the Muslim world and the non-Muslim world. What it means is circulating capital so that it will increase. The same applies to lending; they give money as a loan provided that it will increase when they get it back. Such transactions are undoubtedly riba.
There is nothing wrong with the principle of the circulation of capital if the capital is invested in trade or business, and the profit is shared between the owner of the capital and the worker. This is called mudaarabah (profit sharing), and there is nothing wrong with it if the capital is kept distinct from the profit. If this money is deposited in a riba-based bank, then taking the interest is haraam and it is not permissible to consume it. It is not permissible to deal with these banks, and loans based on interest are not permissible. It is also not permissible to accept payment in that currency for any job if that job helps to support a system that is based on riba.
With regard to using this currency (such as the dollar), there is nothing wrong with doing so in the case of necessity, even if that leads to helping to advance the economy of that country. That is because the dollar is accepted in most Muslim and other countries, so it is permissible to deal with it because of necessity. But if there is an Islamic currency that is used, then we can do away with the dollar. And Allah knows best.
2. Riba is forbidden because of the harmful effects that result from it, such as:Economic effects, e.g., keeping money idle and unproductive, and swelling the ranks of the poor; Social effects, e.g., cutting ties, creating enmity and hatred between the poor and the rich, and spreading corruption and promiscuity caused by need;
3. Riba is forbidden according to the Qur’aan and Sunnah, and definitive scholarly consensus. Whoever regards it as permissible is a kaafir, because the basic principle is that whoever rejects something on which there is obvious scholarly consensus is guilty of kufr. Shaykh al-Islam Ibn Taymiyah (may Allaah have mercy on him) said: The belief that the well-known obligations are obligatory and that the well-known prohibitions are forbidden is one of the most important basic principles of faith, and the one who rejects that is a kaafir according to scholarly consensus” (Majmoo’ al-Fataawa, 12/497)
Ibn Qudaamah (may Allaah have mercy on him) said: “ Whoever believes that something is permissible when there is consensus that it is forbidden and the ruling thereon is well known among the Muslims and the texts leave no room for doubt concerning it – such as pig meat, adultery and the like, concerning which there is no difference of scholarly opinion – is guilty of kufr. (Al-Mughni, 12/276 +
Al-Nawawi (may Allaah have mercy on him) said: ”But nowadays Islam has spread and the knowledge that zakaah is obligatory is well known to the elite and commoners alike; the scholar and the ignorant are both aware of it. So no one has any excuse for misinterpreting (the texts) and denying it. The same applies to everyone who denies any matter of religion on which the ummah is agreed, if knowledge of it is widespread, such as the five daily prayers, fasting the month of Ramadaan, doing ghusl to cleanse oneself of janaabah (impurity following sexual activity), the prohibition on adultery, alcohol and marrying mahrams, and other rulings, unless he is new in Islam and does not know its rulings, in which case if he denies something out of ignorance he is not guilty of kufr… But with regard to matters on which there is consensus but which may only be known by those with specialized knowledge, such as the prohibition on being married to a woman and her paternal aunt or maternal aunt at the same time, or that the one who kills with intent cannot inherit (from his victim), or that the grandmother is entitled to one-sixth (of the estate), and other such rulings, then whoever denies them is not guilty of kufr, rather he is to be excused because knowledge of these things is not widespread among the common folk.
Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said: “The ruling on riba is that it is haraam according to the Qur’aan and Sunnah and scholarly consensus. It is classified as one of the major sins, because Allaah says (interpretation of the meaning): “but whoever returns (to Ribaa), such are the dwellers of the Fire — they will abide therein” [QS al-Baqarah 2:275]. “And if you do not do it, then take a notice of war from Allaah and His Messenger”. [QS al-Baqarah 2:279]
and because the Messenger of Allaah (peace and blessings of Allaah be upon him) cursed the one who consumes riba, the one who pays it, the two who witness it and the one who writes it down. So it is a major sin. There is scholarly consensus that it is forbidden, hence whoever denies that it is forbidden although he lives in a Muslim environment is an apostate, because this is one of the obviously forbidden things on which there is consensus.
But if we say this, does that means that the scholars are agreed on all forms of riba? The answer is no; there is a difference of opinion concerning some forms of it. This is like what we have said about zakaah being obligatory according to consensus, but despite that there is no consensus on every form of it. They differed concerning the zakaah on camels and oxen that are used for farming or irrigation, and they differed concerning the zakaah on jewellery and the like, but in general the scholars are agreed that riba is haraam and is a major sin. (Al-Sharh al-Mumti’ ‘ala Zaad al-Mustanqi’, 8/387). Based on that, it may be said: “Whoever denies that riba is forbidden is a kaafir,” because the fact that it is forbidden is one of the matters indicated by the texts, and the scholars are obviously agreed that it is haraam, and this is well known among the Muslims. But if he denies that a specific form of riba is forbidden, concerning which there is a difference of opinion among the scholars or there is no consensus that it is obviously forbidden, then he is not a kaafir; rather his case should be examined further. He may be a mujtahid who will be rewarded for his ijtihad, or he may be excused, or he may be an evildoer if by regarding this as permissible he is following his own whims and desires.
And Allaah knows best. May Allaah send blessings and peace upon our Prophet Muhammad.
(Source: https://islamqa.info/index.php/en/answers)
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The above questions were answered by 1. Shaykh ‘Abd-Allah Ibn Jibreen 2. Sheikh Muhammed Salih Al-Munajjid. and 3 Islam Q&A.
Editor: Sofyan Kaoy Umar, MA, CPIF. Email: ustazsofyan@gmail.com.