Category: Riba, Loans and Working in Banks

Dealing with Riba Banks

Question :

What is the Islamic ruling regarding all of the following:

The one who places his money in the bank, and then when it has been in there a year it gains interest.

- The one takes out a loan from the bank to be repaid later with interest.

- The one who deposits his money in these banks, but he does not get any interest.

-The worker who works in these banks, -regardless of whether he is a manager or other than that.

-The real estate owner who rents his properties to these banks?

Answer:

It is not permissible to deposit money in the banks for interest or to take loans with interest. This is because all of that are clearly forms of Riba. It is also not permissible to deposit money anywhere else other than the bank if there is interest gained. Likewise, it is not permissible to borrow money from anyone with interest. Rather, that is forbidden according to all of the people of knowledge. This is because Allâh says:
"And Allah has allowed selling and forbidden Riba."

And He says:
"Allah will destroy Riba and will give increase for Sadaqat (deeds of charity, alms, etc.)."

And He says:
"O you who believe! Fear Allah and give up what remains (due to you) from Riba (from now on), if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger. But if you repent, you shall have your capital sums.

Deal not unjustly (by asking for more than your capital sums), and ou shall not be dealt with unjustly (by receiving less than your capital sums)."

Then, after all of this He says:
"And if the debtor is having a hard time (has no money), then grant him time till it is easy for him to repay."

Allâh informs His servants of this because it is not permissible to demand the person in difficult circumstances to pay what is due on him of a debt (if he does not have resources to pay it), nor to burden him with an increase of money due to giving him time to pay. Rather, it is obligatory to give him time until it is easy for him to pay without any increase due to his inability to pay. That is from the mercy of Allâh for His servants, His gentleness with them and His protecting them from oppression and greed that harms them and does not benefit them.

In reference to depositing money in the banks without gaining interest, there is no harm in it if the Muslim is forced to do so. In reference to working in the banks that deal in Riba, it is not permissible, regardless of whether the person is a manager, a secretary, an accountant or anything else. This is due to Allâh's Statement:
"And cooperate in righteousness and piety and do not cooperate in sin and transgression. And fear Allah. Verily, Allah is severe in punishment."

This is also due to what is confirmed from the Prophet that he cursed the person who devours Riba, the person who gives it, the person who writes it and its witnesses, and he said:
"They are the same (in sin)."

This was recorded by Imam Muslim in his Sahih.

The Verses and Hadiths are many that prove the forbiddance of assistance in the commissioning of acts of disobedience (i.e., sins). Likewise, renting out real estate properties to owners of banks that deal in Riba is not permissible due to the mentioned evidences. This is also due to what that contains of assisting them in their acts of Riba.

We ask Allâh to bless everyone with guidance and to give all the Muslims success, both the rulers and the subjects, in waging war against Riba, avoiding it and being sufficed with what Allâh and His Messenger have allowed of legal transactions. Verily, He has control over that and He is capable of doing it.