Riba or Usury is exploitative

Taking and consuming Riba is not permissible according to the Quran, Sunnah and definitive scholarly consensus. One of the major destructive sins. Whoever regards it as permissible is a kafir. To reject something on which there is obvious scholarly consensus is kufr such as pig meat, adultery, alcohol and the like. “but whoever returns (to riba), such are the dwellers of the Fire — they will abide therein” 2:275 “And if you do not do it, then take a notice of war from Allah and His Messenger” 2:279 Allah explicitly promises in the Quran that He will destroy all money earned through interest by wiping off all blessings from his money and no good will remain in it. That same money will be a cause of severe punishment for the usurer in the hereafter. Allah destroys interest and gives increase for charities. 2:276 The Messenger PBUH cursed the consumer, the payer, witnesses of riba transactions and the writer of it. Loans based on interest are not permissible.
  1. Prohibition is meant to ensure equity in exchange.
  2. To ensure that people’s wealth is protected by making unjust and unequal exchanges illegal.
Islam promotes charity & helping others through kindness and to remove sentiments of selfishness and self-centeredness, which creates social antipathy, distrust, and resentment. This creates opportunities and contexts in which people are encouraged to act charitably—loaning money without interest. Long-term investments for the benefit of others such as Sadaqah Jariyah, Waqf projects and Zakat, all ensures a social-security net for people in need. Whole concept of interest is riba and thus unlawful.
  • It promotes inequality.
  • Interest is said to increase the gap between the rich and poor.
The doctrine of prohibition is largely respected by a quarter of the global population as well as many non-Muslims against the concept of charging to borrow money. “O you who believe! Fear Allah and give up what remains [due to you] of interest, if you are true believers.” 2:278 Whoever fears Allah – He will make for him a way out and will provide for him from where he does not expect. 65:2-3 Riba destroys not only the individual, but also corrupts societies, oppresses the poor, involves hoarding and monopolising, and results in negative economic growth. Despite the temporary enjoyments it may bring, interest will only lead to a lifetime of misery.