Written in Urdu by Sadr al-Shari’ah Mufti Amjad Ali (d.) explaining the pitfalls of falling into usury due to societal customs and pressures.
MUHAMMAD KALIM MISBAHI
Just as Islamic law has prohibited taking ribā, it has also prohibited giving ribā. Within Prophetic narrations, both have been cursed and considered to be equal [in sin]. Nowadays, ribā is so rampant that interest-free loans are rarely available since the wealthy choose not to give money to anyone unless there is some financial benefit [for them]. Those in need of loans, due to their desperation do not take a moment to consider how severe the punishment in the hereafter is for taking interest-based loans and neither do they refrain from such.
Islamic law has unequivocally prohibited both the giving and taking of interest (usury). Both are cursed in prophetic reports, and it is explicitly stated that they are equally reprehensible. Nowadays, the prevalence of usury is so extensive that finding an interest-free benevolent loan (qarḍ ḥasan) has become exceedingly rare. Wealthy individuals are unwilling to extend financial assistance without accruing some benefit, and those in need often fail to consider the grave consequences associated with taking an interest-based loan. Efforts should be earnestly undertaken to avoid the profound consequences of engaging in usury from a religious perspective.
In various life events such as marriages, circumcisions, and other ceremonies associated with joy or sorrow, people tend to exceed their financial means. Customary practices within families and communities are deeply ingrained to the extent that suggestions to curtail expenses are perceived as an affront to one’s honor. Our advice to fellow Muslims is to liberate themselves from such customs, refrain from excessive spending, and be cognizant of the detrimental consequences both in this world and the hereafter.
It is imperative to resist succumbing to societal customs, avoid the allure of fleeting pleasures or the pursuit of societal expectations that may compromise one’s financial stability. The prospect of a bitter future life should dissuade individuals from pursuing momentary pleasures or adhering blindly to societal norms. If individuals do not rectify their behavior, they risk becoming ensnared by the shackles of interest, thereby neglecting endeavors for salvation, as is evident from current observations. Therefore, our second piece of advice to these Muslims is to distance themselves from the pitfalls associated with interest-based loans.
According to a clear Quranic directive, there is no blessing in engaging in usury, and real-life experiences affirm that considerable fortunes have been destroyed due to involvement in usurious practices. The current question at hand is how to address challenges when opting to refrain from interest-based loans. In response, our revered scholars have articulated certain principles, suggesting that adherence to these guidelines can provide sanctuary from the impurity and degradation associated with usury. For the lender who was inclined towards an illegitimate gain, a lawful approach may be adopted to attain permissible benefits. However, some adjustments may be required in the structure of transactions. The primary objective remains steering clear of what is deemed unlawful and forbidden.
