Forms of Riba and its Hukm (Rulings)

Author of book: Dr. Zaharuddin Abd Rahman

Retyped on site by: Muaz.

Definition of Riba in the most absolute form – which includes both the jami’ (comprehensive) and mani’ (restrictive) meanings.

Forms of Riba

The Shafi’ee mazhab divides riba into 3 forms.

• Riba al-fadl
• Riba an-nasiah
• Riba al-yad

RIBA AD-DUYUN (DUE TO DEBT) The interest rate caused by duration
Riba al-qard That is the rate or any additional benefit conditioned on the principle. This condition is made at the beginning of the loan contract, introduced by the lender upon the borrower.	Riba al-jahiliyyah That is the rate or any additional benefit exceeding the principle due to the borrower’s failure in paying of the loan within agreed time. The lender will impose a fine on the borrower because of his request to delay the debt repayment or due to his failure in paying off debts within a fixed period.

RIBA AL-BUYU’ (DUE TO TRADING OF USURIOUS ITEMS) The inequality of weight or quantity of the two usurious items exchanged or in deferment

Riba an-nasak  The trading or exchanging of two usurious items of the same kind in deferment. (i.e. transaction is not completed on the spot) Eg: 5 grams of gold sold at $2 000 in deferment 10 kg of rice exchanged with 15 kg wheat in deferment Riba exists when the above transaction takes place in deferment.

Riba al-fadl The trading or exchanging of two usurious items of the same kind with different weight or quantity. Eg: Exchanging 5 grams of gold (grade 916) with 6 grams of gold (grade 750). This is haram because both items should be of equal weight. The grade/quality does not affect the hukm Exchanging or selling 10 grams of basmati rice with 15 grams of A1 graded rice. This is haram because both items should weight 10 grams.

To avoid Riba al-Fadl and Riba an-Nasak:

1. The weights must be equal (although may differ in quality and value)
2. The transaction must be concluded on the spot (both seller and buyer cannot depart until they deliver their respective items)

The Ruling of Riba in Islam

ONE WHO GIVES OR EATS RIBA WILL WAGE WAR AGAINST ALLAH S.W.T. & HIS MESSENGER

O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged. [Surah al-Baqarah 2:278-279]

DIMINISHING BLESSINGS OF WEALTH & LIFE

Punishment in this world A sign of the wealth of those who deal with riba is not blessed: it diminishes swiftly without them realising it it drives them to indulge in activities that is worthwhile and sinful no matter how much money they have, they constantly feel impoverished it will drag the owner towards disobedience and transgression and thus his good character and trustworthiness will fade away –          his wealth will be tested through robbery and treachery

Punishment in the Hereafter Ibn Abbas stated: “It will not be accepted from the consumer of riba (who uses his riba-based wealth) his charity, his hajj, his jihad and his extending of kinship.”

 

AS IF COMMITING ZINA
Commiting zina with one’s own parent   “Riba is of seventy-two types: the least of them is equivalent (in sin and filthiness) to a man having intercourse with his mother.”   (At-Tabrani, 7/158; al-Hakim)	Commiting zina 36 times   “A dirham that a person knowingly eats of riba is worse, before Allah, than thirty-six acts of zina.”   (Related by Ahmad & Ad-Dar Qutni)

IT IS ONE OF THE SEVEN DEADLY SINS

“Avoid the seven deadly sins: shirk, black magic, killing someone without just cause, eating an orphan’s property, consuming riba, running away from the battlefield and accusing chaste woman of fornication.”  (Related by al-Bukhari and Muslim)

Taken from the book: “Money, You & Islam” by Dr. Zaharuddin Abd Rahman