September 12, 2017 Usury

Usury Prohibited*

[2:275] Those who charge usury are in the same position as those controlled by the devil's influence. This is because they claim that usury is the same as commerce. However, GOD permits commerce, and prohibits usury. Thus, whoever heeds this commandment from his Lord, and refrains from usury, he may keep his past earnings, and his judgment rests with GOD. As for those who persist in usury, they incur Hell, wherein they abide forever.

[2:276] GOD condemns usury, and blesses charities. GOD dislikes every disbeliever, guilty.

*2:275-278 It is an established economic principle that excessive interest on loans can utterly destroy a whole country. During the last few years we have witnessed the devastation of the economies of many nations where excessive interest is charged. Normal interest—less than 20%—where no one is victimized and everyone is satisfied, is not usury.

Divine Guarantee

[2:277] Those who believe and lead a righteous life, and observe the Contact Prayers (Salat), and give the obligatory charity (Zakat), they receive their recompense from their Lord; they will have nothing to fear, nor will they grieve.

[2:278] O you who believe, you shall observe GOD and refrain from all kinds of usury, if you are believers.

[2:279] If you do not, then expect a war from GOD and His messenger. But if you repent, you may keep your capitals, without inflicting injustice, or incurring injustice.

[2:280] If the debtor is unable to pay, wait for a better time. If you give up the loan as a charity, it would be better for you, if you only knew.

[2:281] Beware of the day when you are returned to GOD, and every soul is paid for everything it had done, without the least injustice.

Usury Prohibited*

[3:130] O you who believe, you shall not take usury, compounded over and over. Observe GOD, that you may succeed. [3:131] Beware of the hellfire that awaits the disbelievers. [3:132] You shall obey GOD and the messenger, that you may attain mercy.

*3:130 Interest on bank deposits and interest charged on loans are lawful if they are not excessive (5-15%). Banks invest and their profits are passed on to the depositors. Since all parties are happy and no one is victimized, it is perfectly lawful to take interest from the bank (see 2:275).

 

[4:29] O you who believe, do not consume each others' properties illicitly— only mutually acceptable transactions are permitted.

The Law of Equivalence

[5:45] And we decreed for them in it that: the life for the life, the eye for the eye, the nose for the nose, the ear for the ear, the tooth for the tooth, and an equivalent injury for any injury. If one forfeits what is due to him as a charity, it will atone for his sins. Those who do not rule in accordance with GOD's revelations are the unjust.