This week, a screenshot went viral showing an online banking platform that charged over 50% of the principal as interest for just six months of borrowing.
Shocking? Yes.
Unjust? Absolutely.
And sadly, this is one of the exact reasons why Islam strictly forbids interest (ribā) because it consumes wealth, traps people in debt, and feeds greed at the expense of others’ hardship.
Allah says in the Qur’an:
“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 from Allah and His Messenger…”
(Surah Al-Baqarah 2:278-279)
The Prophet ﷺ did not only forbid interest, but he cursed everyone involved in it:
“The Messenger of Allah ﷺ cursed the one who consumes interest, the one who gives it, the one who records it, and the two witnesses to it, and said: They are all the same.”
(Muslim)
As Muslims, we must shun ribā completely whether we are taking it, giving it, recording it, or facilitating it. This applies to banks, private lending, and even informal “small loans” with interest among friends or family.
If you must lend, lend for the sake of Allah, seeking reward from Him, not profit from someone’s desperation. Remember a dirham of ribā is worse than committing zina multiple times, as stated in the Hadith.
Reflection: If that borrower were your own struggling son or daughter, would you still demand interest on top of their hardship? Then why do it to another Muslim?
May Allah purify our earnings, protect us from ribā, and grant us wealth that is halal, blessed, and free from oppression. Āmīn
