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Lesson Usury
The wisdom of Allah necessitated that usury be designated as one of the major sins in Islam. Likewise, it was forbidden to nations before us; because of the great devastation and calamity that befalls society and its individuals. Allah says: (For wrongdoing on the part of the Jews, We made unlawful for them [certain] good foods which had been lawful to them, and for their averting from the way of Allāh many [people]. And [for] their taking of usury while they had been forbidden from it, and their consuming of the people's wealth unjustly. And We have prepared for the disbelievers among them a painful punishment.)[An-Nisaa:160, 161]
The seriousness of usury is shown by the severe threat that is associated with it, Allah says: (O you who believe, fear Allah, and give up usury that is still due if you are truly believers. But if you do not do it, then beware of a declaration of war from Allah and His Messenger. However, if you repent, you may retain your capital – neither harming nor suffering harm. ).[Al-BAqarah;278,279] So Allah has forbidden usury and threatens the one who deals in it with war.
The Prophetﷺ reinforced the unlawful nature of usury as reported by Jabir (may Allah be pleased him) who said "The Messenger of Allah cursed the one who accepted usury, the one who paid it, the one who recorded it, and the two witnesses to it, saying they were all alike." (Muslim, 1598)
Definition of Usury
Usury linguistically means increase and growth. With that meaning is the statement of Allah: (that one party might gain an advantage over the other)[An-Nahl:92] I.e. more in numbers.
Definition of Usury
As for its meaning in the legislative sense, then usury is the differentiation of things, and extra paid back on a loan, specific to certain things the legislation has prohibited both types.
Types of Usury
Usury of Excess
It is extra for the types of things that have been stipulated and what is attached to them. It is the extra when exchanging usury-based wealth with what is similar, such as selling one measure of good dates for two measures of bad dates.
The Usury of Delay
It is by increasing the term in what must be paid back, which is the delay in receiving the sale of two types of goods with the reason of usury of differentiation. Like selling a measure of wheat for a measure of barley with a delay in receiving it back.
The Ruling of Usury
Usury is forbidden by the Qur'an and the Sunnah and consensus. Imam Nawawi (may Allah have mercy upon him) said: The Muslims have unanimously agreed with the prohibition of usury and that it is one of the major sins. (Al-Majmo', 9/391)
The Wisdom Behind its Prohibition
1- Encouraging actual economic activity: the usurer does not invest his money into something productive that would benefit himself or society, or into agriculture, industry, trade, or otherwise.
2- Preventing earnings without giving something in return: Islam regulates financial transactions in a way that helps achieve the interests of both parties.
3- Usury removes good among people: This is contrary to the purpose of Islam in spreading good and benevolence among them.
4- Prevention of Exploitation: The lender usually exploits the need of the borrower to whom he lends it with usury.
5- Preventing injustice: Usury is an injustice to one of the parties, and Allah forbids all forms of injustice.
Harms of Usury
The dangers and harms of usury are very serious indeed and extend to all aspects of the lives of individuals and societies.
1. Ethical and Spiritual Harms
Usury imprints on the person dealing in it with a ravenous nature, a hardening of the heart, and the worship of money. So he permits himself to be unjust to others and exploits their needs, weaknesses, and poverty. On the other hand, it breaks the heart of the one who is in need of money, so his soul and the land around him become constrained for him even though it is so expansive.
Usury is a destructive element factor that ruins societies, as it makes them fragmented and disunited. In such societies, the strong eat the weak, and no one helps someone else except if there is a vested interest.
3. Economic Harms
Usury leads to disruption of the economic system on all levels. Debts accumulate on individuals, and actual productivity in society is disrupted or regresses as a consequence.
