Usury!

Usury, also known as riba, refers to the practice of charging or paying interest on a loan. In Islam, usury is strictly prohibited as it is considered exploitative and unfair. Islamic finance principles are based on the principles of justice and fairness, and the prohibition of usury is one of the core tenets of Islamic finance.

The Quran clearly prohibits the practice of usury and declares it as a sin. In Surah Al-Baqarah, verse 275, Allah says, “Those who devour usury will not stand except as stands one whom the Satan by his touch has driven to madness. That is because they say: ‘Trade is like usury,’ but Allah has permitted trade and has forbidden usury.” The verse highlights that while trade is permissible, usury is not.

Islamic finance offers an alternative to usury-based financial systems. In Islamic finance, the lender and the borrower share the risk and reward of the investment. Rather than charging interest on a loan, Islamic finance relies on profit and loss sharing, where the lender and the borrower share the profits or losses of an investment.

Islamic finance also promotes ethical investments that align with Islamic values. Investments in industries such as gambling, tobacco, and alcohol are not permitted in Islamic finance.

In conclusion, usury is prohibited in Islam as it is considered exploitative and unfair. Islamic finance offers an alternative to usury-based financial systems, promoting ethical investments and profit and loss sharing.