Are bank interests considered usury (riba)? What were the types of usury during the time of the Prophet, peace be upon him, and was any of it permissible or was all of it forbidden?
Interest-based profits from banks are prohibited (), whereas the profits of Islamic banks derived from legitimate (profit-sharing) are permissible (). The usury (riba) that was prohibited during the time of the Prophet, peace be upon him, was of two types: Riba al-Fadl (an excess in one of two homogeneous exchanged items) and Riba al-Nasi'ah (an increase in debt in exchange for deferment). Usury has been prohibited by the Qur'an, the , and scholarly consensus. Allah the Almighty says: "And Allah has permitted trade and forbidden interest." The Messenger of Allah, peace be upon him, also cursed the one who consumes riba, the one who feeds it to others, its scribe, and its two witnesses.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/178120
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 178120
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy