Category: Riba, Loans and Working in Banks

Working in Riba Banks is not permissible

Question :

I was in Egypt working in one of the government banks and the important occupation of this bank was giving loans to farmers and others with easy payment conditions for a period of time that would be between a number of months to years. These loans and mortgages of cash and commodities were supported by interest gains and late fees that were set by the bank when giving the loans and mortgages, for example, it may be 3% or 7% or more than that of increase added to the principle of the loan. When the time of paying the loan comes, the bank seeks the return of the original sum of the loan, plus the interest gains and fees in cash. If the customer delays in paying at the designated time, the bank adds interest fees for tardiness to the loan for every day the person is late past the date of payment.

Based upon this, the goals of this bank are to collect the interest fees on loans and late fees for whoever does not adhere to his payment at the appointed times. From these sums of money the employees of the bank are paid their wages. I have been working at this bank for 20 years. I got married from the salary of the bank, I live on it, I take care of my children with it and I give charity. I do not have any other work besides it. So, what is the ruling of the Islamic law concerning this?

Answer:

The work of this bank in taking basic interest gains and other interest gains due to late payments, all of that is Riba and it is not permissible to work in places like this bank. This is because working in it is a form of cooperating in sin and transgression. Indeed Allâh said:
"And cooperate in righteousness and piety, and do not cooperate in sin and transgression. And fear Allah. Verily, Allah is severe in punishment.

In the Sahih, it is reported from Jabir bin 'Abdullah that the Prophet cursed the person who devours Riba, the person who gives it, its writer and its witnesses, and he said:

"They are the same (in sin)."

Muslim recorded this. In reference to the wages that you took, they are lawful for you if you were ignorant of the Islamic ruling. This is due to Allâh's Statement:
"And Allah has permitted selling and forbidden Riba. So, whosoever receives an admonition from his Lord and stops eating Riba, he shall not be punished for the past; his case is for Allah (to judge); but whosoever returns (to Riba), such are the dwellers of the Fire - they will abide therein forever. Allah will destroy Riba and will give increase for Sadaqat (deeds of charity, alms, etc.). And Allah does not like the disbelieving sinners."

However, if you knew that this work was not permissible for you, whatever you took of wages you must spend in charitable projects and giving to the poor while repenting to Allâh. Whoever sincerely repents to Allâh, Allâh accepts his repen- tance and forgives his sins, as Allâh said:
"O you who believe! Turn to Allah in sincere repentance. Perhaps your Lord will expiate your sins for you and enter you into Gardens (of Paradise) with rivers flowing beneath them."

And He said:
"And all of you repent to Allah, O believers, so that perhaps you may be successful."