275- THOSE WHO EAT (TAKE) USURY RISE JUST LIKE THOSE SATAN ATTACKED WITH HIS TOUCH, THIS IS BECAUSE THEY SAID: “TRADE IS JUT LIKE USURY”, BUT ALLAH PERMITTED TRADE AND FORBAD USURY.  THOSE WHOM WHEN RECEIVING ADVICE FROM THEIR LORD, THEY REFRAIN, HE HAS WHAT WAS EARNED IN THE PAST, AND HIS CASE IS FOR ALLAH TO JUDGE.  AS FOR THOSE WHO RETURN, THEY ARE THE PEOPLE OF THE FIRE, WHERE THEY WILL ABIDE FOREVER. 

This Ayah and the next six that is seven Ayahs in total are about usury.  Usury used to be very prevalent in the Arab societies, in fact in all societies and it still is. 

Usury affects the whole society and not only business, but social relationships also.  In usury few wealthy members of the society use and abuse the needs of others, to their benefit, but to the detriment of the whole society. 

In usury, the contract is not balanced as happens in trading.  In usury the lender makes profit, whether the barrower makes money of not.  The lender secures his assets while the barrower has no security.  It is a very uneven sided contract in which the lender has the upper hand.

The Jews have been the chief money lenders in Europe throughout the middle ages; they were financing farmers and small business.  Their greatest borrowers however were the kind and princes and governments of European countries.  They financed big wars not big civil or industrial projects.  Allah the wars in Europe throughout the Middle Ages and the modern history has been financed by money lenders mostly Jewish.

The money lenders joined forces and started to form big institutions for lending money, they called banks, the first of which was in Amsterdam, Holland.  It was the first banking center in the world and its banks financed all European countries and their wars.

In this Ayah Allah the Highest draws us a picture of what those who take the profit of usury be like on the Day of Resurrection.  As they rise on that day, they will rise like having been struck by Satan, leaving the person, confused, bewildered and unsteady.  This was their state in this life and it will be their state in the Hereafter.

The claim that Usury is like being a partner in a trade can not be substantiated because:

1-    Trade is based on the principle of profit and loss to all the partners involved in the trade.  In Usury, the money lender guarantees a profit for himself, regardless of whether the business or trade made profit or loss.

2-    If a barrower is to make a profit, but it is just enough to pay the interest on the loan, he would not have any return himself, and the money lender will have all the return.  If the barrower makes a profit, that is less than the interest of the loan, then his debt will increase and he will have no return himself.

Therefore as we can see, usury is not at all like trade. 

There are two types of Usury:

1-    Al-Nasea: In this type, a person may burrow money to pay it back at an agreed time later (days, weeks, months or years) with an increased value i.e. For example burrow 100 to pay back 120 after a year.

2-    Al-Fadl: In this type one barters one thing against another, of the same kind but for different amounts.  Such as to barter a measure of dates for two measures of different dates.

Abu Saed El-Khodari reported: “Allah’s messenger prayer and peace upon him had some dates brought to him, he said: ‘These are not our dates’ the man said: ‘Allah’s messenger, we exchanged our dates, two sae (a measure) of them for one sae of this’ Allah’s messenger prayer and peace upon him said: ‘this is usury, return them, and then sell our dates, then buy us some of these dates’  (M:Mosaqah;97)

Therefore, when bartering, one should barter the same thing for another, the same amount for the same, and goods should change hands at the same time.  Allah’s messenger prayer and peace upon him said: “Gold for gold, wheat for wheat, barely for barely, dates for dates, salt for salt, and the same for the same, a quantity for the same quantity, and from one hand to another (at the same time) If different kinds, then sell as you wish, as long as it is a hand for a hand” (M: Mosaqah; 81)

There is guild on the person who burrows money through usury as well as he who lends money.  Allah’s messenger prayer and peace upon him said: “He who increases or asks for an increase, has dealt in usury.  He who takes it and him who gives it are the same”.  (M: Qesamah; 82)

Allah’s messenger prayer and peace upon him tells us that whatever wealth we might come to through usury, will come to very little.  Meaning that it will not be that much nor shall it be blessed, that is one is not going to benefit from it.  Allah’s messenger prayer and peace upon him said: “Any one who increases his wealth from usury, it will end in very little”.  (Ma: Tegarate; 58 & a: 1; 395)

Whoever used to deal in usury but takes heed of Allah’s command, he may have what he earned, and no more, and then hope for Allah’s Mercy and Forgiveness.  For those who continue with usury or return back to it, their recompense is the Hell-Fire.  This is because Usury is one of the Great Sins which deserves severe punishment.

B: Bukhari   M: Muslim    Mal: Malek   A: Ahmed   D: Abu Dawood      

Da: Daremy   Ma: Ibn Magah                   N: Nesae      T: Termezi