There is no actual detail of the rationale behind the prohibition of riba in the holy Quran and Sunnah. But there is some arguing about this issue. The Muslim scholars which are the economist have provided various rationales for this prohibition based on the consequences of the existence of interest in modern societies or by arguing that modern economic theory has not provided any justification for the existence of even the necessity of interest rate. The rationale that provided by the scholars will be discuss further later on. Furthermore, the rationales that they have provided may not yield optimal comprehension because human wisdom and comprehension are limited compared to the knowledge of Allah swt. The reasons of prohibiting riba are as follows; Riba corrupts society, Riba implies improper appropriation of other people’s property, Riba’s ultimate effect is negative growth, Riba demeans and diminishes human personality, Riba is unjust. 3.1 RIBA CORRUPTS SOCIETY

As in Surah al-Baqarah, there is some number of relevant points about the rationale behind the prohibition of Riba in Islam; namely that riba is categorically prohibited, it is constituted by what is over and above the principal, it is unjust (thulm), that riba is destined to destruction (mahq), and riba demeans and diminishes individuals who indulge in it.

‘Those who swallow riba cannot rise up save as he arises whom the devil has prostrated by (his) touch. That is because they say: Trade is just like riba; whereas

Lo! Those who believe and do good works and establish worship and pay the poor-due their reward is with their Lord and there shall no fear come upon them neither shall they grieve. They will abide therein. As for him who returns (to riba)Such are rightful owners of the Fire. That is best for those who seek Allah’s countenance.Allah permits trading and forbids riba. Wrong not and you shall not be wronged. and straitens (it for whom he will). then you have your principal (without riba). has increase . So give the kinsman his due and to the needy. And if you do not then be warned of war (against you) from Allah and His messenger. Lo! Herein indeed are portents for folk who believe. And such are they who are successful. then (let there be) postponement to (the time of) ease. and that you remit the debt as alms giving would be better for you if you did not know. and his affair (henceforth) is with Allah. Allah has blighted usury and made almsgiving fruitful. Qur’an 2:275-280 The Qur’an further informs us that riba is a corrupting element in society: ‘See they not that Allah enlarges the provision for whom He will. And if the debtor is in straitened circumstances. if you are (in truth) believers. He unto whom an admonition from his Lord comes and (he) refrains (in obedience thereto). Allah loves not the impious and guilty. O you who believe! Observe your duty to Allah and give up what remains due to you) from riba. and to the wayfarer. seeking Allah’s countenance. That which you give in riba in order that it may increase in other people’s property has no increase with Allah. but that which you give in charity. And if you repent. he will keep (the profits of) that which is past.

Corruption does appear on land and sea because of (the evil) which men’s hands have done. he goes about the earth spreading corruption and destroying [man's] tilth and progeny: and God does not love corruption. Is there any of your (so called) partners (of Allah) that does aught of that? Praised and exalted be He above what they associate with him. Allah is He Who created you and then sustained you. may be read as the sub-message of the verses above. 2004) But whenever he prevails. giving people less than full measure and wronging them in their goods. that He may make themtaste a part of that which they have done. ‘severing the ties of kinship’.manifold. the following verse of Quran should be analyse. “In order to understand the relationship between riba and fasad. arrogance borne of enormous wealth and sexual perversion. then causes you to die. ‘shedding bloods’.that the charging interest is one of those behaviours which corrupt society”. (Mehdi Kadir. such as: the ‘destruction of crops and people’. “It has been inferred by many scholars that this implication of fasad in society resulting from men’s own behaviour.”(Nejatullah. dividing people into classes and discriminating between them. 2:205 . in order that they may return. then gives life to you again. Quran. These verses give us the idea of the recurrent themes and consequences related to the concept of fasad. Qur’an 30:37-41 From the verse we can see thet riba has an explicit asociation with fasad (corruption). 2006).

Quran 28:4 And Lot! (Remember) when he said unto his folk: Lo! ye commit lewdness such as no creature did before you. work corruption in the land and sever your ties of kinship? Quran 47:22 Lo! Pharaoh exalted himself in the earth and made its people castes. and cut ye not the road (for travellers). if ye were given the command. A tribe among them he oppressed. Quran 29:28 For come ye not in unto males.Would ye then. and commit ye not abomination in your meetings ? But the answer of his folk was only that they said:Bring Allah's doom upon us if thou art a truthteller! Quran 29:29 He said: My Lord! Give me victory over folk who work corruption Quran 29:30 . Lo! he was of those who work corruption. killing their sons and sparing their women.

Quran 11:85 And when thy Lord said unto the angels: Lo! I am about to place a viceroy in the earth. we hymn Thy praise and sanctify Thee? He said: Surely I know that which ye know not. they said: Wilt thou place therein one who will do harm therein and will shed blood. lo! Allah love thou not corrupters Quran 28:77 Wrong not mankind in their goods. and be thou kind even as Allah hath been kind to thee. and wrong not people in respect of their goods. Quran 26:183 O my people! Give full measure and full weight in justice. And do not evil in the earth.2 RIBA IMPLIES IMPROPER APPROPRIATION OF OTHER PEOPLE’S PROPERTY . in the earth. Quran 2:30 3. while we. and seek not corruption in the earth. making mischief. and do not evil. causing corruption.But seek the abode of the Hereafter in that which Allah hath given thee and neglect not thy portion of the world.

Sign up to vote on this title
UsefulNot useful