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Hadith on Riba

The Prophet ﷺ emphasized the severe consequences of engaging in riba (usury or interest) and its harmful effects on both the individual and society. Several hadiths give clear warnings about riba, describing it as one of the most destructive sins and a source of divine curse. Below are some key hadiths on riba with detailed explanations.

What are Hadiths?​

Hadith​

  • A Hadith is a collection of sayings, actions, and approvals of the Prophet Muhammad ﷺ. It serves as a key source of guidance for Muslims, second only to the Quran. Hadiths are categorized into Sahih (authentic), Da'if (weak), and Hasan (good) based on their reliability.
  • The Hadiths complement the teachings found in the Quran and provide further context and examples of how to implement Islamic principles in daily life. They are recorded by various scholars in collections, with the two most famous being Sahih al-Bukhari and Sahih Muslim.
  • The Hadiths cover all aspects of life, from worship and morality to financial transactions and governance.

1. Bukhari (2085), Fath-ul-Bari (4/313)​

"The Prophet ﷺ saw a man in a river of blood being hit with stones; he was a riba consumer."

1.Explanation​

  • This hadith describes a vision experienced by the Prophet ﷺ, in which he witnesses a man in a river of blood, being struck with stones. The Prophet ﷺ explains that this individual is a riba consumer, one who has engaged in interest-based transactions.
  • The river of blood symbolizes the intense suffering and eternal torment that awaits individuals who persist in riba. The act of being hit with stones adds to the severity of the punishment, indicating that such individuals will face harsh consequences in the Hereafter.
  • This hadith serves as a powerful reminder of the spiritual dangers of riba and the severity of this sin. It highlights that those who engage in usury will face divine punishment that is both physical and spiritual.
  • Key takeaway: The Prophet ﷺ uses vivid imagery to convey the serious consequences of engaging in riba, emphasizing the eternal punishment for those who persist in this practice.

2. Bukhari (2015), Muslim (89)​

"Seven destructive sins: shirk, magic, unjust killing, consuming riba, consuming orphan’s wealth, fleeing from battle, and slandering chaste women."

2.Explanation​

  • In this hadith, the Prophet ﷺ lists seven destructive sins, of which consuming riba is included. These sins are considered among the gravest offenses in Islam because they have far-reaching consequences for both the individual and society.
  • Shirk (associating partners with Allah) and magic are included because they directly attack the fundamental tenets of faith. Similarly, unjust killing and consuming orphan’s wealth are destructive to human life and rights.
  • The Prophet ﷺ specifically includes riba in this list, emphasizing that it is not just a financial issue but a spiritual and moral corruption that undermines the integrity of a believer’s faith and the well-being of the community.
  • The inclusion of riba as one of the seven destructive sins elevates its severity, reminding Muslims that this is not a minor issue but a major sin that can lead to both social unrest and spiritual decay.
  • Key takeaway: Consuming riba is a grave sin, and it is placed alongside other major offenses that directly harm both individuals and society.

3. Muslim (7597)​

"The Prophet ﷺ cursed the one who consumes, gives, records, and witnesses riba transactions."

3.Explanation​

  • This hadith highlights the comprehensive nature of the prohibition of riba in Islam. The Prophet ﷺ specifically curses not only the person who consumes riba but also the one who gives it, the one who records the transaction, and even the one who witnesses it.
  • The inclusion of these different roles underlines the shared responsibility of all individuals involved in an interest-based transaction. It's not just the lender or borrower who is held accountable, but also anyone who facilitates or supports the transaction.
  • The curse is a severe warning to those who engage in any part of the riba process, emphasizing that all participants, whether directly or indirectly involved, are equally guilty.
  • This hadith reinforces the moral obligation of Muslims to avoid supporting or participating in any form of riba. It shows that neutrality is not an option; one must actively avoid and discourage such transactions.
  • Key takeaway: The curse applies to everyone who plays any role in a riba transaction, including the lender, borrower, and those facilitating or witnessing the process.

4. Abu Said Al-Khudri & Ibn Abbas Debate​

"Discussion on whether riba applies only to debts or also to exchanges."

4.Explanation​

  • This hadith represents a debate between two prominent companions, Abu Said Al-Khudri and Ibn Abbas, about the scope of the prohibition of riba. The debate centers around whether riba is only applicable to debts or if it also extends to exchanges (such as trading goods or services).
  • Ibn Abbas held the view that riba applies to both debts and exchanges (like exchanging items of the same type, such as gold for gold or dates for dates). He argued that riba in trade applies when there is a delay or unequal exchange in transactions.
  • Abu Said Al-Khudri, on the other hand, argued that riba primarily applies to loans and debts, not trade. However, their discussion reveals a difference in interpretation of the Quranic prohibitions and hadiths.
  • This debate highlights the complexity of the issue and underscores the need for scholars to carefully consider context and application in different situations. It also shows that riba is not always straightforward and requires deep understanding and deliberation.
  • Key takeaway: The debate illustrates that riba’s prohibition can extend beyond debt transactions to certain forms of trade, depending on the conditions of the exchange, such as whether the exchange is fair or involves unequal gain.

Conclusion​

The hadiths on riba emphasize the extreme seriousness of engaging in usurious practices and provide several important lessons:

  • Riba is one of the seven most destructive sins in Islam, alongside major offenses like shirk and unjust killing.
  • The Prophet ﷺ curses anyone involved in riba transactions, whether as a lender, borrower, or witness, showing that all those who participate in such practices bear responsibility for their actions.
  • Riba leads to spiritual decay, and its consequences are both eternal and severe, affecting both the individual and society.
  • The debate among scholars about the scope of riba highlights the need for careful consideration of the context, and it is a reminder that riba is not only an issue in loans but can also affect trade and exchanges under certain conditions.

Islamic finance advocates for ethical practices, fair dealings, and the elimination of exploitation in all financial transactions. By avoiding riba and promoting justice and charity, Muslims can ensure the well-being and prosperity of both individuals and communities.