Rid Your Riba
What Is Riba?
Riba is an Arabic word that means “to increase" or “to exceed" and is commonly used in reference to unequal exchanges or charges and fees for borrowing. Interest is deemed riba, or an unjust, exploitative gain, and such practice is forbidden under Islamic law.
Understanding Riba
Riba is prohibited under Sharia law for a couple of reasons. It is meant to ensure equity in exchange. It is meant to ensure that people can protect their wealth by making unjust and unequal exchanges illegal. Islam aims to promote charity and helping others through kindness. To remove sentiments of selfishness and self-centeredness, which can create social antipathy, distrust, and resentment. By making riba illegal, Sharia law creates opportunities and contexts in which people are encouraged to act charitably—loaning money without interest.
Why Is Riba Forbidden?
In the Quran, receiving or paying interest is considered a major sin because it promotes inequality. Interest is said to increase the gap between the rich and poor in society and anyone who receives it is expected to donate that money to a charitable cause.
“Fear Allah, and give up outstanding interest if you are ˹true˺ believers. If you do not, then beware of a war with Allah and His Messenger!” (Surah Al-Baqarah 2:278)
What is considered Riba in Islam?
In Islam, Riba is interest gained or paid on transactions or savings. This includes:
- Any interest earned from savings accounts, ISAs and other savings investments.
- Interest earned by lending money, property or goods
- Payments of interest for credit card fees, loans or mortgages
What should we do with interest money?
Ideally, we should not engage in interest-based activities. However, in this day and age it may not always be possible.
In this case, you can keep note of any interest earned and deposit the money to charity. There is no religious reward for this however it will be utilised in a halal way.
Deposit your Riba with us today and we will use it towards projects helping the poor and less fortunate, interest will not be spent on projects such as building mosques or printing Quran as this is not permissible.
To deposit your interest with us today, please visit our Rid Your Riba donation page.
