Reasons Why Riba' Is Haram That You Should Know



Briefly, riba' is prohibited in Islam. There are a lot of evidences that mention about the illegality of riba' in Islam, such as;

 "And that which you give in riba for increase through the property of [other] people, will have no increase with Allah. But that which you give in charity seeking the countenance of Allah, it is these who will get a recompense multiplied." (30:39)

 “And because of their charging riba while they were prohibited from it.” (4:161)

 “O those who believe do not eat up riba doubled and redoubled.” (3:130)

 The issue here is, what is riba' and how many type of riba' are there?

 These are the information that you're looking for:

 Basically, Quran and the Hadith have forbidden usury and all usurious transactions in the strongest terms. 

 Riba' can be defined as, excess, increase or additional compensation without due consideration made conditional for either party to a  contract. Simple example, car loans by conventional banks.

 Then, there are 2 types of riba', which are:

  • Riba on credit (riba' al-nasai'e)
  • Riba on cash (riba' al-fadhl)
Click this link to read about the comparison of these types of riba'.

So, then we should know now the reasons why riba' is haram in Islam. Let's spread the awareness to our society and support the islamic financial system.

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