Is Bank Interest Permissible in Islam Or Not?
The dispute about the prohibition on bank interest in Islam started in the 19th century which is still going on among different Islamic scholars of the world.
The controversy was first raised in Egypt by the Grand Mufti, Muhammad Abduh. He issued a fatwah on postal savings which is not available in today’s modern age. However, most Muslims and numerous banks still have this question in their minds whether bank interest is allowed or not.
Most of the counselors believe that it is not allowed in Islam and a Muslim should never take the interest.
In the 20th century which is considered as the era of digitalization, many Islamic banks were opened in Muslim and non-Muslim countries with a major Muslim population. However, the question still hangs in the air whether bank interest is acceptable in Islam or not.
But, there are numerous Islamic scholars who believe that banking interest is acceptable in Islam. On the other hand, modern commentators of the Quran translate riba as usury means stealing.
Maulana Fazlur Rehman who taught at Chicago university for many years did some paperwork on the argument of banking interest in Islam. He concluded that banking interest is not prohibited. People who don’t even agree with this must read this article as it comprises scholarly and original sources.
The Quran highly condemns riba and says, “Those who swallow usury (riba) cannot arise except as one whom the devil prostrates by (his) touch. That is because they say, trading is only like usury. And Allah has allowed trading and forbidden usury.
To whomsoever then the admonition has come from his Lord, and he desists, he shall have what has already passed. And his affair is in the hands of Allah. And whoever returns (to it) — those are the companions of Fire where they will abide.” (2275)
Furthermore, “But if you do (it) not, (i.e. continue to take riba), then be apprised of war from Allah and His Messenger; and if you repent, then you shall have your capital. Wrong not and you shall not be wronged.” (2279)
Now you know how strictly Islam condemns to take riba that it allows the war against the usurer.
What comes to one’s mind is that if banking interest is a severe sin then why many Islamic bankings have this option?
Then what riba means? It is an unjust growth. For instance, a person can become super rich overnight by wrongdoings or is ruined fully. Islam only allows the earning which is earned by hard-work both physically and intellectually.
In short, no matter what everybody says but the Quran highly prohibits bank interest and unjust growth, hence there is no way to take a risk in it. Otherwise, the result is surely the hellfire for the one who does not follow Islamic guidance.