Understanding Islaamic concept of "r i b a" (usury)

 

By: Shahid Bin Waheed شاهد بن وحيد

 

بسم الله الرحمن الرحيم

الحمدلله رب العالمين والصلوة والسلام على اشرف الانبياء وسيدالمرسلين نبينا محمد صل ا لله عليه وعلى آله واصحابه وازواجه اجمعين - امابعد

All the praises and thanks be to Allaah, Sustainer of the Universe, and blessing and salutation to be the most distinguish of the Messengers and foremost among the Prophets, our Prophet Muhammad, peace and blessings of Allaah be on him and on his wives, children and Companions.

 

In this treatise we will briefly discuss the Qur’aanic concept of Riba (ربا ) that has often caused misconception in the minds of Muslims and non-Muslims alike.

 

According to the dictionary the word Riba ربا means: ربا= فائدةٌ فاحِشَة and ربا= فائدةٌ, which then in English is translated as usury & interest.

The word Riba ربا is derived from root letters ر ب و and according to Qur’aan definition, it means,

 

الربا : مصدر ربا يربو : إذا زاد ، ويطلق الربا في الشرع على الزيادة إذا خلت من العوض .

 

According to قاموس الفاظ القران الكريم (Arabic-English) by Dr. Abdullah Abbas al-Nadwi,

(الرَّبْو) الربا (usury)[noun]

The word رِبٰو is but particularly covered by the English word usury, which parlance means only an exorbitant or extortionate interest; The Arabic رِبٰو on the other hand means any addition, however, slight, over and above the principle sum lent, and this includes both usury and interest.

 

Prophet Muhammad صلى الله عليه وسلم elaborated upon the meaning and wider connotation of Riba ربا and included in its ambit several transactions where there was no element of credit. Thus, in the context of Shariah, such increase is called Riba ربا that is obtained without any financial consideration.

 

“The dictionary meaning of Riba ربا is increase and the reference in the Ayaah (verse) is to every increase against which there is no exchange or consideration”

(Ibn-e-Arabi, Ahkam ul-Qur’an)

 

Various forms of Riba ربا were in vogue in Arabia, when Prophet Muhammad صلى الله عليه وسلم was sent. Most common practice was to lend a specific amount for a specific period and at an agreed rate determined in advance. If the borrower repaid at the agreed time, then only the agreed amount of interest was charged. If he were unable to repay at the time, then the amount of interest would be increased.  In any case, even before the revelation of Glorious Qur’aan, the essence of Riba ربا was considered to be the gain, made out of loaning of money. This very aspect has been highlighted in the saying of the Prophet Muhammad صلى الله عليه وسلم,

“Every loan which brings a gain is a Riba ربا based loan.”

 

Riba ربا was common in Arabia and during the early days of the Prophethood of Prophet Muhammad صلى الله عليه وسلم, the situation did not change. Almost eight (8) years after migration to Madinah, Ayaat آيات (verses) in respect of Riba ربا were revealed and Riba ربا was categorically prohibited. As soon as these Ayaat آيات (verses) were revealed, everyone realized that these referred to taking any profit on loans or credit, that this was now prohibited, and gave it up.

 

Riba: Usury which is of two major kinds; (A) Riba An-Nasî’a i.e. interest on lent money; (B) Riba Al-Fadl, i.e. taking a superior thing of the same kind of goods by giving more of the same kind of goods of inferior quality, e.g., dates of superior quality for dates of inferior quality in great amounts.

 

Prophet Muhammad صلى الله عليه وسلم, however, in keeping with his position as the last Messenger of Allaah, elucidated upon these Ayaat آيات (verses). The meaning of Riba ربا, as explained by the Prophet Muhammad صلى الله عليه وسلم included of trade, which was not hitherto considered Riba ربا by the Arabs. The second kind of Riba ربا, in the words of the Prophet Muhammad صلى الله عليه وسلم was:

RIBA ربا (USURY) [Taken from Sahih Muslim صحيح مسلم]

 

[1584] Abu Sa'id Al-Khudri reported that Allah's Messenger (SAW) had said: Do not sell gold for gold, except one for one, and don't increase a thing upon something; and don't sell silver unless one for one, and don't in-crease something upon something, and do not sell for ready money something to be given later.

 

[1584R1] Nafi' reported that Ibn 'Umar told him that a man of the tribe of Laith said that Abu Sa'id AI-Khudri narrated it (the above-mentioned hadith) from the Messenger of Allah (SAW) in a narration of Qutaiba. So 'Abdullah and Nafi' went along with him, and in the hadith transmitted by Ibn Rumh (the words are) that Nafi' said: 'Abdullah (b. 'Umar) went and I along with the man of Bani Laith. We entered (the house) of Sa'id AI-Khudri, and he ('Abdullah b. 'Umar) said: I have been informed that you say that Allah's Messenger (SAW) had forbidden the selling of silver with silver except in case of one for one, and the selling of gold for gold except one for one. Abu Sa'id pointed with his fingers to his eyes and ears, and said: My eyes saw, and my ears listened to Allah's Messenger (SAW) saying: Do not sell gold for gold, and do not sell silver for silver except one for one, and do not increase anything over something, and do not sell for ready money something, not present, but hand to hand.

 

[1584R2] This hadith has been narrated on the authority of Abu Sa'id AI-Khudri through another chain of transmitters.

 

[1584R3] Abu Sa'id AI-Khudri (Allah be pleased with him) reported that Allah's Messenger (SAW) had said: Do not sell gold for gold and silver for silver weight for weight or of the same quality.

 

[1585] 'Uthman b. 'Affan reported that Allah's Messenger (SAW) had said: Do not sell a dinar, and one dirham for two dirhams.

 

A doubt created by the erroneous English translations of Abdullah Yusuf Ali and Muhammad Asad and its clarification. Readers should know the following facts about Abdullah Yusuf Ali and Muhammad Asad.

 

Abdullah Yusuf Ali

Muhammad Asad

1934-37
Ali Abdullah Yusuf, The Holy Qur'an: Translation and Commentary (Lahore, 1934-37). At least 35 edns. Another extremely popular translation. Written in style and couched in chaste English, it stands out above other translations as a highly readable rendering of the Qur'an into English. Copious notes are reflective of Yusuf Ali's vast learning. Nonetheless, some of his notes, particularly, on the Qur'anic eschatology and angelology smack of apologia and pseudo-rationalism. Sufistic bias is also quite marked in his notes. (For a detailed discussion on Yusuf Ali's unorthodox views, please see Kidwai, A.R., 'Abdullah Yusuf Ali's Views on the Qur'anic Eschatology', Muslim World League Journal 12 (5) February 1985, pp. 14-17).

1980
Muhammad Asad, The Message of The Qur'an (Gibraltar, 1980). l edn. Translated in chaste, idiomatic English by a convert from Judaism to Islam. However, it contains some serious departures from the orthodox viewpoint on a number of Qur'anic statements. Asad appears to be reluctant to accept the literal meaning of some Qur'anic verses. For example, he doubts the throwing of Ibrahim into fire, Jesus speaking in the cradle; refers to Khidr and Dhulqarnain as mythical figures and expresses unconventional views on abrogation (Naskh) theory. (For details please see Arfaque Malik's review in the Muslim World Book Review, Vol. 1, No. 1 (1980), pp. 5-7

 

The subject of Riba ربا is discussed with great details and/or elaboration in the Glorious Qur’aan in the following Ayaat آيات and order.

 

·        1st revelation   Surah al-Rum       Ayah آية 39 (30:39)

·        2nd revelation  Surah al-Nisa,      Ayah  آية 161  (4:161)

·        3rd revelation  Surah al-Imran     Ayaat آيات 130-32 (3:130-132)

·        4th revelation  Surah al-Baqarah  Ayaat آيات 275-281 (2:275-281)

 

Now let us read what exactly Umar رضى الله عنه has said that has been distorted by some for their ulterior motives and to fit their agenda.

 

Ibn Majah

[2276] Umar b. Khattab (Allah be pleased with him) is reported to have said, "The last command revealed (regarding lawful and unlawful things) was the verse pertaining to usury. Allah's Messenger (peace and blessings of Allah be upon him) was made to depart (form the material word) and he did not explain to us (a comprehensive) interpretation of it. Therefore, give up interest and the doubtful thing."

 

It isnad is Sahih and its authorities are reliable (and authentic) but Sa'id whose name is Ibn 'Uruba, intermingled one hadith with the other one as laid down in al-Zawa'id.

 

حَدَّثَنَا نَصْرُ بْنُ عَلِيٍّ الْجَهْضَمِيُّ حَدَّثَنَا خَالِدُ بْنُ الْحَارِثِ حَدَّثَنَا سَعِيدٌ عَنْ قَتَادَةَ عَنْ سَعِيدِ بْنِ الْمُسَيَّبِ عَنْ عُمَرَ بْنِ الْخَطَّابِ قَالَ إِنَّ آخِرَ مَا نَزَلَتْ آيَةُ الرِّبَا وَإِنَّ رَسُولَ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ قُبِضَ وَلَمْ يُفَسِّرْهَا لَنَا فَدَعُوا الرِّبَا وَالرِّيبَةَ

 

فَدَعُوا الرِّبَا وَالرِّيبَة

So give up interest and whatever resembles interest

 

Readers must note that it was the second kind of Riba ربا Umar رضى الله عنه faced some difficulties in delineating it in detail. This is because the items of commodities have been specifically mentioned and it has been stated that difference in the quantities exchanged or deferred settlement of one side of the transaction is engaging in Riba ربا. However, the text of this Hadeeth حديث does not specify if the ruling is confined to these six (6) items only or certain other items or commodities are also governed by the same principle. The remarks of Farooq-e-Azam Umar Ibn Khattab رضى الله عنه relates to this Hadeeth حديث above about 2nd kind of Riba ربا, wherein it need to be ascertained if the ruling by the Prophet Muhammad صلى الله عليه وسلم is confined to the six (6) commodities mentioned therein or have these been specified as an example and certain other commodities are also governed by the same principle. It is for this reason that experts in Islaamic Jurisprudence and fiqh i.e. four Imaams have individually researched the matter and came up with principles on the basis of which they included certain other commodities, the details can be seen in any book of fiqh.

 

In the matter of interest, misguided pro-interest lobbyist always lift part off the context, while quoting Farooq-e-Azam Umar Ibn Khattab رضى الله عنه, which is related to a kind of Riba ربا totally unrelated to interest in vogue today, i.e. exchange of the six (6) commodities. The misguided and ignorant takes the remarks of Farooq-e-Azam Umar Ibn Khattab رضى الله عنه to mean that Riba ربا is a vague term whose meanings were not obvious even to the closest Companions of the Prophet Muhammad صلى الله عليه وسلم. Nothing can be farther from truth than the claim made by Pseudo-Muslims stating that whatever has been written on Riba ربا is the personal interpretation of religious scholars and jurists. Since the tradition which reports the remarks by Farooq-e-Azam Umar Ibn Khattab رضى الله عنه that he could not check full details of second kinds of Riba ربا with the Prophet Muhammad صلى الله عليه وسلم, also includes the words,

 

فَدَعُوا الرِّبَا وَالرِّيبَة

So give up interest and whatever resembles interest

 

This was therefore, his (Farooq-e-Azam Umar Ibn Khattab رضى الله عنه) recommendation to the Muslims that they not only give up Riba ربا, but everything in which an element of Riba ربا is suspected.  So if they are truthful than why they suppress this fact?

 

Islaamic Shariah governs issue of Riba ربا as a general rule and/or injection for Muslim Ummah. However, there are some separate and individually unique issues that are dealt separately on case-by-case basis according to Islaamic Shariah. For example, Muslims living in the West, where many non-Islaamic practices are part and parcel of the daily norms and/or being legally mandated. Therefore, Muslims living in the West who are compelled to obey something un-Islaamic beyond their control preventing them to observe the Shariah rulings like dealing with auto insurance and/or credit cards, mortgage etc. Their situation is a separate issue and cannot be used as pretext to make Haraam things Halaal, as the situation of the Muslims in the West makes certain things permissible for being under compulsion (See Qur’aan 5:3)

 

Saturday, July 16, 2005

 

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