3.

RATIONALE BEHIND THE PROHIBITION OF RIBA IN ISLAM

There is no actual detail of the rationale behind the prohibition of riba in the holy Quran

and Sunnah. But there is some arguing about this issue. The Muslim scholars which are

the economist have provided various rationales for this prohibition based on the

consequences of the existence of interest in modern societies or by arguing that modern

economic theory has not provided any justification for the existence of even the necessity

of interest rate. The rationale that provided by the scholars will be discuss further later

on. Furthermore, the rationales that they have provided may not yield optimal

comprehension because human wisdom and comprehension are limited compared to the

knowledge of Allah swt. The reasons of prohibiting riba are as follows; Riba corrupts

society, Riba implies improper appropriation of other people’s property, Riba’s ultimate

effect is negative growth, Riba demeans and diminishes human personality, Riba is

unjust.

3.1 RIBA CORRUPTS SOCIETY

As in Surah al-Baqarah, there is some number of relevant points about the rationale

behind the prohibition of Riba in Islam; namely that riba is categorically prohibited, it is

constituted by what is over and above the principal, it is unjust (thulm), that riba is

destined to destruction (mahq), and riba demeans and diminishes individuals who indulge

in it.

‘Those who swallow riba cannot rise up save as he arises whom the devil has

prostrated by (his) touch. That is because they say: Trade is just like riba; whereas
Allah permits trading and forbids riba. He unto whom an admonition from his Lord

comes and (he) refrains (in obedience thereto), he will keep (the profits of) that which

is past, and his affair (henceforth) is with Allah. As for him who returns (to riba)-

Such are rightful owners of the Fire. They will abide therein. Allah has blighted usury

and made almsgiving fruitful. Allah loves not the impious and guilty. Lo! Those who

believe and do good works and establish worship and pay the poor-due their reward is

with their Lord and there shall no fear come upon them neither shall they grieve. O

you who believe! Observe your duty to Allah and give up what remains due to you)

from riba, if you are (in truth) believers. And if you do not then be warned of war

(against you) from Allah and His messenger. And if you repent, then you have your

principal (without riba). Wrong not and you shall not be wronged. And if the debtor is

in straitened circumstances, then (let there be) postponement to (the time of) ease; and

that you remit the debt as alms giving would be better for you if you did not know.

Qur’an 2:275-280

The Qur’an further informs us that riba is a corrupting element in society:

‘See they not that Allah enlarges the provision for whom He will, and straitens (it for

whom he will). Lo! Herein indeed are portents for folk who believe. So give the

kinsman his due and to the needy, and to the wayfarer. That is best for those who seek

Allah’s countenance. And such are they who are successful. That which you give in

riba in order that it may increase in other people’s property has no increase with

Allah; but that which you give in charity, seeking Allah’s countenance, has increase
manifold. Allah is He Who created you and then sustained you, then causes you to die,

then gives life to you again. Is there any of your (so called) partners (of Allah) that

does aught of that? Praised and exalted be He above what they associate with him.

Corruption does appear on land and sea because of (the evil) which men’s hands have

done, that He may make themtaste a part of that which they have done, in order that

they may return.

Qur’an 30:37-41

From the verse we can see thet riba has an explicit asociation with fasad (corruption). “It

has been inferred by many scholars that this implication of fasad in society resulting from

men’s own behaviour, may be read as the sub-message of the verses above- that the

charging interest is one of those behaviours which corrupt society”. (Mehdi Kadir, 2006).

“In order to understand the relationship between riba and fasad, the following verse of

Quran should be analyse. These verses give us the idea of the recurrent themes and

consequences related to the concept of fasad, such as: the ‘destruction of crops and

people’, ‘severing the ties of kinship’, dividing people into classes and discriminating

between them, ‘shedding bloods’, giving people less than full measure and wronging

them in their goods, arrogance borne of enormous wealth and sexual

perversion.”(Nejatullah, 2004)

But whenever he prevails, he goes about the earth spreading corruption and destroying

[man's] tilth and progeny: and God does not love corruption.

Quran, 2:205
Would ye then, if ye were given the command, work corruption in the land and sever

your ties of kinship?

Quran 47:22

Lo! Pharaoh exalted himself in the earth and made its people castes. A tribe among them

he oppressed, killing their sons and sparing their women. Lo! he was of those who work

corruption.

Quran 28:4

And Lot! (Remember) when he said unto his folk: Lo! ye commit lewdness such as no

creature did before you.

Quran 29:28

For come ye not in unto males, and cut ye not the road (for travellers), and commit ye not

abomination in your meetings ? But the answer of his folk was only that they said:Bring

Allah's doom upon us if thou art a truthteller!

Quran 29:29

He said: My Lord! Give me victory over folk who work corruption

Quran 29:30
But seek the abode of the Hereafter in that which Allah hath given thee and neglect not

thy portion of the world, and be thou kind even as Allah hath been kind to thee, and seek

not corruption in the earth; lo! Allah love thou not corrupters

Quran 28:77

Wrong not mankind in their goods, and do not evil, making mischief, in the earth.

Quran 26:183

O my people! Give full measure and full weight in justice, and wrong not people in

respect of their goods. And do not evil in the earth, causing corruption.

Quran 11:85

And when thy Lord said unto the angels: Lo! I am about to place a viceroy in the earth,

they said: Wilt thou place therein one who will do harm therein and will shed blood,

while we, we hymn Thy praise and sanctify Thee? He said: Surely I know that which ye

know not.

Quran 2:30

3.2 RIBA IMPLIES IMPROPER APPROPRIATION OF OTHER PEOPLE’S

PROPERTY