The History of Prohibition of Riba' In Islam



All we Muslims should know that, in Quran, there are few verses that mention by Allah pertaining to the phases in prohibiting riba'.

In brief, there are a total of 4 phases:

1. Ar-Rum, (30:39)

"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."  

 This verse was revealed in Makkah. In this step, the riba' was not prohibitive in nature. It is refers to the avoidance of usury in life to seek the blessing of Allah.

 2. An-Nisa, (4:161)

 "That they took riba, though they were forbidden …"

 This verse was revealed in Medina and described about the behavior of Jews who took usury, and then punished by God. This verse is a warning to the perpetrators of usury.

Behind this verse, there is a story that explains that there is indeed a group of Jews that practice usury and opposed the tenets of their Prophets.


3. Ali-Imran, (3:130)

"O you who believe! Devour not usury, doubled and multiplied; but fear Allah,
that you may prosper."

At this stage of the Quran forbids usury that is 'fahisy', namely ignorance multiplied usury.

Although there are some scholars who say that the word "Adh'afan Mudho'afah" (manifold) of this paragraph is not a condition on the prohibition of Riba. Because if it as an condition, the usury becomes illegal only if the amount is high, and if the amount is small, then it is not usury.

But then the other scholar rejected that statement.

4. Al-Baqarah, (2:275-276)
"Those who devour riba will not stand except as stands one the Satan has driven to madness by his touch. That is because they have said: "Trade is but like riba." but Allah has permitted trade and forbidden riba. So, whosoever after receiving admonition from his Lord desists, he shall be pardoned for the past, and his case is for Allah (to judge); but one who reverts (to the offence), those are the companions of the fire. They will abide therein (for ever). Allah destroys riba and gives increase for deeds of charity, for Allah loves not any ungrateful/non-believing sinner."


At this point the Quran has banned all types of usury and all that stuff. This verse banned all types of usury.

Thus, all kinds of buying and selling that involve usury is forbidden.

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