1.

0 Introduction of Riba

Since the ages of legacy by Prophet Muhammad S.A.W., he has encourage and forbid public to never
take riba (interest) in debt and also in doing business. The societies of Arab Jahiliyyah in the past were
among the peoples in Arabic land before the birth of our Prophet was actively charged higher interest or
riba in doing their business. Until Allah S.W.T sent the message to the Prophet in Holy Qur'an (Surah al-
Baqarah, verses 278-81):

O believers, fear God, and give up the riba that remains outstanding if you are believers. (278) If you do
not do so, then be sure of being at war with God and His Messenger. But, if you repent, you can have
your principal. Neither should you commit injustice nor should you be subjected to it. (279). If the
debtor is in difficulty, let him have respite until it is easier, but if you forego out of charity, it is better for
you if you realize. (280). And fear the Day when you shall be returned to the Lord and every soul shall be
paid in full what it has earned and no one shall be wronged. (281).

1.2 Definition of Riba

riba comes from the arabic word ziyadah whose language is extra or extra berries or grows and grows.
even technically usury is the act of taking extra from the original property or capital quietly. In Islamic
terms, riba contains three forms of definitions based on certain forms of transactions as follows:

a) debt - that is, more than the original loan in accordance with the required agreement.

b) the sale and purchase of riba - ie the contract on the exchange of certain items that are unknown
whether or not there is an equation on the scale or measure recognized by the syarak.
c) Currency exchange and riba vacuous materials such as suspending the submission of one of the
materials being exchanged or sold.