Riba is an Arabic word from the verb to increase or grow and usually refers to an extra income which is conditional on an amount of money given or saved. It includes interest which is paid by banks on savings or on loans or debt. Interest is strictly forbidden in Islam and to accept or deal with it is a major sin.
“O believers, take not doubled or redoubled interest, and fear Allah that you may prosper.”
(Qur’an: 3: 130-2)
Interest if forbidden in Islam as it is a socially unjust mechanism for lending money; it benefits the rich and is a detriment to the poor.
What should I do if I have interest money or my bank gives it automatically?
Many scholars recommend that any interest should be given to a charitable cause with an understanding they will not receive any reward for the donation. The money should only be used for the poor and needy and is not be spent on certain projects, such as the construction of Mosques or printing of Qur’ans.
Can I donate interest money to African Development Trust?
Yes, you can donate it here or by calling 0207 343 3355. When you make the donation please specify your donation type as interest so we can ensure that your money is only used on projects eligible.