اٰمَنَ الرَّسُوۡلُ بِمَاۤ اُنۡزِلَ اِلَيۡهِ مِنۡ رَّبِّهٖ وَ الۡمُؤۡمِنُوۡنَ​ؕ كُلٌّ اٰمَنَ بِاللّٰهِ وَمَلٰٓـئِكَتِهٖ وَكُتُبِهٖ وَرُسُلِهٖ لَا نُفَرِّقُ بَيۡنَ اَحَدٍ مِّنۡ رُّسُلِهٖ​ وَقَالُوۡا سَمِعۡنَا وَاَطَعۡنَا​ غُفۡرَانَكَ رَبَّنَا وَاِلَيۡكَ الۡمَصِيۡرُ‏ ﴿2:285﴾ لَا يُكَلِّفُ اللّٰهُ نَفۡسًا اِلَّا وُسۡعَهَا ​ؕ لَهَا مَا كَسَبَتۡ وَعَلَيۡهَا مَا اكۡتَسَبَتۡ​ؕ رَبَّنَا لَا تُؤَاخِذۡنَاۤ اِنۡ نَّسِيۡنَاۤ اَوۡ اَخۡطَاۡنَا ​ۚ رَبَّنَا وَلَا تَحۡمِلۡ عَلَيۡنَاۤ اِصۡرًا كَمَا حَمَلۡتَهٗ عَلَى الَّذِيۡنَ مِنۡ قَبۡلِنَا ​​ۚرَبَّنَا وَلَا تُحَمِّلۡنَا مَا لَا طَاقَةَ لَنَا بِهٖ​ ۚ وَاعۡفُ عَنَّا وَاغۡفِرۡ لَنَا وَارۡحَمۡنَا اَنۡتَ مَوۡلٰٮنَا فَانۡصُرۡنَا عَلَى الۡقَوۡمِ الۡكٰفِرِيۡنَ‏ ﴿2:286﴾

(2:285) The Messenger believes, and so do the believers, in the guidance sent down upon him from his Lord: each of them believes in Allah, and in His angels, and in His Books, and in His Messengers. They say: “We make no distinction between any of His Messengers. We hear and obey. Our Lord! Grant us Your forgiveness; to You we are destined to return.”³³⁷ (2:286) Allah does not lay a responsibility on anyone beyond his capacity.³³⁸ In his favour shall be whatever good each one does, and against him whatever evil he does.³³⁹ (Believers! Pray thus to your Lord): “Our Lord! Take us not to task if we forget or commit mistakes. 

Our Lord! Lay not on us a burden such as You laid on those gone before us.³⁴⁰ Our Lord! Lay not on us burdens which we do not have the power to bear.³⁴¹ And overlook our faults, and forgive us, and have mercy upon us. You are our Guardian; so grant us victory against the unbelieving folk.”³⁴²

Notes

337. This verse outlines what one is required to believe in and what should be the distinguishing characteristics of one’s conduct. They consist of the following: belief in God, in His angels, in His Books, in all His Messengers (instead of some rather than others), and in the fact that ultimately one will have to stand before God’s judgement. These are the five fundamental articles of faith in Islam. Having accepted them, the only proper attitude for a Muslim is to cheerfully accept and follow whatever directives he receives from God. Instead of exulting in his moral excellence he should be humble and should constantly seek God’s forgiveness and mercy. 

338. Man’s answerability to God is limited by the extent of his ability. If a man does not have the ability to do a certain thing, God will not take him to task for not having performed it. In the same way, if it is really beyond a man’s ability to abstain from something, God will not blame him for having failed to abstain from it. It should be noted here that man will not be the final judge as to whether he had the ability to do something or not. Such judgement will be made by God alone. 

339. This is the second fundamental principle of God’s law of retribution. Every man will be rewarded for the services he has rendered, none will be rewarded for services rendered by others. The same applies to punishment. It is the one who is guilty who will be punished. It is possible, however, that if a man has initiated either good or bad practices, they will continue to affect people’s lives. The resulting good and bad deeds of people will be reckoned either to their credit or against them, since they are clearly related to their efforts and actions. It is impossible, however, that a map should be either rewarded for an act of goodness or punished for an act of evil in which he has had no share – neither by intent nor practical action. The requital of acts is not transferable. 

340. The prayer made here is that God should not subject them to the severe tests and the terrible persecutions and hardships undergone by their predecessors. It is God’s law that those who commit themselves to follow Truth and righteousness are subjected to severe tests and tribulations, and it is a believer’s duty to meet them with patience and fortitude. At the same time, the believer should always pray that God may make it easy for him to follow the path of Truth and righteousness. 

341. Believers pray to God not to place upon them a burden beyond their capacity of endurance, and to subject them only to those tests from which they may emerge triumphant. May it not happen that the hardships are too much for them to bear, and that their feet falter and are turned away from the path of righteousness,

342. In order to appreciate fully the spirit of this prayer, one should remember that these verses were revealed on the occasion of the ascension of the Prophet, a year before his migration to Madina. At that time the struggle between Islam and unbelief had reached its climax. Not only in Makka, but throughout the Arabian peninsula, there was no place where the lives of those who wished to follow the religion of God had not been made extremely difficult. In these circumstances the Muslims were told in what manner they ought to pray to their Lord. It is obvious that if the bestower himself tells one how to present one’s request, the granting of the request becomes virtually assured. Hence, this prayer greatly strengthened the hearts of the Muslims. Moreover, this prayer implicitly taught the Muslims not to allow their feelings to flow along undesirable channels. They should instead mould them into a prayer to their Lord. 

Think of the heart-rending cruelties to which the Muslims were subjected merely because of their devotion to Truth, and then turn to the contents of this prayer, where there is no trace of bitterness against the enemies. Consider the physical afflictions and material losses which the Muslims suffered, then note how this prayer does not contain the slightest hint of worldly ambition. Compare the wretchedness and misery of these devotees of Truth with the pure, exalted feelings with which this prayer is overflowing. This comparison will enable us to appreciate the nature of the spiritual and moral training provided to men of faith.

لِلّٰهِ مَا فِى السَّمٰوٰتِ وَمَا فِى الۡاَرۡضِ​ؕ وَاِنۡ تُبۡدُوۡا مَا فِىۡۤ اَنۡفُسِكُمۡ اَوۡ تُخۡفُوۡهُ يُحَاسِبۡكُمۡ بِهِ اللّٰهُ​ؕ فَيَـغۡفِرُ لِمَنۡ يَّشَآءُ وَيُعَذِّبُ مَنۡ يَّشَآءُ​ ؕ وَاللّٰهُ عَلٰى كُلِّ شَىۡءٍ قَدِيۡرٌ‏ ﴿2:284﴾

(2:284) All that is in the heavens³³³ and the earth belongs to Allah.³³⁴ Whether you disclose whatever is in your hearts or conceal it,³³⁵ Allah will call you to account for it, and will then forgive whomsoever He wills, and will chastise whomsoever He wills. Allah has power over everything.³³⁶

Notes

333. These are the concluding observations on the subject. Just as this surah opened with an enunciation of the basic teachings of religion, so the fundamentals upon which Islam rests are reiterated in the concluding section of the surah, It is useful to go through the first section of this surah see (verses 1-5) while reading these concluding verses. 

334. This is the first fundamental principle of Islam. That God is the Sovereign of the heavens and the earth and all they contain, and that it is improper for man not to bend himself in obedience and service to God. 

335. This sentence mentions two other matters. First, that man is individually responsible to, and answerable before, God. Second, that the Lord of the heavens and the earth, before Whom man is answerable, is All-Knowing. Thus, nothing is concealed from Him, not even intentions and thoughts which lie hidden deep in the hearts and minds of people. 

336. This refers to God’s absolute authority. He is not bound by laws framed by others which might limit Him to operating in a certain manner. He is an absolute sovereign and has the full power either to punish or pardon people.

وَاِنۡ كُنۡتُمۡ عَلٰى سَفَرٍ وَّلَمۡ تَجِدُوۡا كَاتِبًا فَرِهٰنٌ مَّقۡبُوۡضَةٌ ​ ؕ فَاِنۡ اَمِنَ بَعۡضُكُمۡ بَعۡضًا فَلۡيُؤَدِّ الَّذِى اؤۡتُمِنَ اَمَانَـتَهٗ وَلۡيَتَّقِ اللّٰهَ رَبَّهٗ​ؕ وَلَا تَكۡتُمُوا الشَّهَادَةَ ​ ؕ وَمَنۡ يَّكۡتُمۡهَا فَاِنَّهٗۤ اٰثِمٌ قَلۡبُهٗ​ؕ وَ اللّٰهُ بِمَا تَعۡمَلُوۡنَ عَلِيۡمٌ‏ ﴿2:283﴾

(2:283) And if you are on a journey and do not find a scribe to write the document then resort to taking pledges in hand.³³¹

But if any of you trusts another, let him who is trusted, fulfil the trust and fear Allah, his Lord. 

And do not conceal what you have witnessed,³³² for whoever conceals it, his heart is sinful. Allah has full knowledge of all that you do. 

Notes

331. This does not mean that pledge transactions are confined to journeys alone. These transactions have been specially mentioned in the context of journeys because during journeys people often have to resort to pledge transactions. Moreover, it has not been laid down that pledge transactions may be entered into only when a scribe is not available to write down the transaction. It is also permissible, if the lender is not satisfied merely with the written promise of the repayment of the loan, for the borrower to seek a loan by pledging some property to the lender. But since the Qur’an urges its followers to be generous in their dealings, and since it is inconsistent with high standards of moral excellence not to make loans to needy persons without keeping some property in custody, the Qur’an has abstained from mentioning this form of dealing even though it is permissible. 

It should also be noted that the purpose of taking a pledge is merely to assure the lender the return of his loan. He has no right at all to benefit from the pledged property. If a person lives, say, either in the building which has been pledged, or pockets its rent, he is guilty of taking interest. There is no essential difference between charging interest directly and using the pledged property. If, however, either cattle or beasts of burden have been pledged, they can be milked and used for transport in lieu of the fodder that one provides them during the period of custody. 

332. Concealing true evidence applies both to a person not appearing to give evidence and to his avoidance of stating facts.

يٰۤـاَيُّهَا الَّذِيۡنَ اٰمَنُوۡۤا اِذَا تَدَايَنۡتُمۡ بِدَيۡنٍ اِلٰٓى اَجَلٍ مُّسَمًّى فَاكۡتُبُوۡهُ ​ؕ وَلۡيَكۡتُب بَّيۡنَكُمۡ كَاتِبٌۢ بِالۡعَدۡلِ​ وَلَا يَاۡبَ كَاتِبٌ اَنۡ يَّكۡتُبَ كَمَا عَلَّمَهُ اللّٰهُ​ فَلۡيَكۡتُبۡ ​ۚوَلۡيُمۡلِلِ الَّذِىۡ عَلَيۡهِ الۡحَـقُّ وَلۡيَتَّقِ اللّٰهَ رَبَّهٗ وَلَا يَبۡخَسۡ مِنۡهُ شَيۡـئًا ​ؕ فَاِنۡ كَانَ الَّذِىۡ عَلَيۡهِ الۡحَـقُّ سَفِيۡهًا اَوۡ ضَعِيۡفًا اَوۡ لَا يَسۡتَطِيۡعُ اَنۡ يُّمِلَّ هُوَ فَلۡيُمۡلِلۡ وَلِيُّهٗ بِالۡعَدۡلِ​ؕ وَاسۡتَشۡهِدُوۡا شَهِيۡدَيۡنِ مِنۡ رِّجَالِكُمۡ​ۚ فَاِنۡ لَّمۡ يَكُوۡنَا رَجُلَيۡنِ فَرَجُلٌ وَّامۡرَاَتٰنِ مِمَّنۡ تَرۡضَوۡنَ مِنَ الشُّهَدَآءِ اَنۡ تَضِلَّ اِحۡدٰٮهُمَا فَتُذَكِّرَ اِحۡدٰٮهُمَا الۡاُخۡرٰى​ؕ وَ لَا يَاۡبَ الشُّهَدَآءُ اِذَا مَا دُعُوۡا ​ؕ وَلَا تَسۡـئَمُوۡۤا اَنۡ تَكۡتُبُوۡهُ صَغِيۡرًا اَوۡ كَبِيۡرًا اِلٰٓى اَجَلِهٖ​ؕ ذٰ لِكُمۡ اَقۡسَطُ عِنۡدَ اللّٰهِ وَاَقۡوَمُ لِلشَّهَادَةِ وَاَدۡنٰۤى اَلَّا تَرۡتَابُوۡٓا اِلَّاۤ اَنۡ تَكُوۡنَ تِجَارَةً حَاضِرَةً تُدِيۡرُوۡنَهَا بَيۡنَكُمۡ فَلَيۡسَ عَلَيۡكُمۡ جُنَاحٌ اَلَّا تَكۡتُبُوۡهَا ​ؕ وَاَشۡهِدُوۡۤا اِذَا تَبَايَعۡتُمۡ وَلَا يُضَآرَّ كَاتِبٌ وَّلَا شَهِيۡدٌ  ؕ وَاِنۡ تَفۡعَلُوۡا فَاِنَّهٗ فُسُوۡقٌ ۢ بِكُمۡ ؕ وَ اتَّقُوا اللّٰهَ​ ؕ وَيُعَلِّمُكُمُ اللّٰهُ​ ؕ وَاللّٰهُ بِكُلِّ شَىۡءٍ عَلِيۡمٌ‏  ﴿2:282﴾

(2:282) Believers! Whenever you contract a debt from one another³²⁵ for a known term, commit it to writing.³²⁶ Let a scribe write it down between you justly, and the scribe may not refuse to write it down according to what Allah has taught him; so let him write, and let the debtor dictate; and let him fear Allah, his Lord, and curtail no part of it. If the debtor be feebleminded, weak, or incapable of dictating, let his guardian dictate equitably, and call upon two of your men as witnesses;³²⁷ but if two men are not there, then let there be one man and two women as witnesses from among those acceptable to you³²⁸ so that if one of the two women should fail to remember, the other might remind her. Let not the witnesses refuse when they are summoned (to give evidence). Do not show slackness in writing down the transaction, whether small or large, along with the term of its payment. That is fairest in the sight of Allah; it is best for testimony and is more likely to exclude all doubts. If it be a matter of buying and selling on the spot, it is not blameworthy if you do not write it down;³²⁹ but do take witnesses when you settle commercial transactions with one another. And the scribe or the witness may be done no harm.³³⁰ It will be sinful if you do so. Beware of the wrath of Allah. He teaches you the Right Way and has full knowledge of everything. 

Notes

325. This is the basis of the rule that the time for the repayment of a loan should be fixed at the time when the loan is transacted. 

326. When friends and relatives borrow from one another it is generally considered unseemly either to commit these loans to writing, or to have them attested by witnesses. Such an act is considered a sign of distrust. But God enjoins that whenever loans or business transactions take place, their conditions should be recorded in black and white and should be attested by witnesses so that there remains no ground for misunderstanding or dispute. It is mentioned in the Hadith that three kinds of people who air their grievances to God go unheeded. The first is the man who does not divorce his wife despite her being of bad character. The second is the guardian of the orphan who hands over the latter’s property to him before his having attained the age of majority. The third is he who loans out his money to a person without making anyone a witness to that transaction. (Cited by Jassas. Ahkam al-Qur’an, vol. 1, p. 481; also Ibn Kathir, in commentary on 4: 5, citing this as a Tradition from Abu Musa al-Ash’ari mentioned bv Ibn Jarir al-Tabari – Ed.) 

327. That is, from among Muslim males. This shows that wherever one has a choice, one should appoint only Muslims as one’s witnesses. In the case of non-Muslim subjects of the Islamic State (ahl al-Dhimmah), however, they may appoint witnesses from among themselves. 

328. What is implied is that every Tom, Dick or Harry is not worthy of acting as a witness. Rather, persons of high integrity enjoying public credibility should be appointed as witnesses. 

329. The purpose of this directive is to stress that it is better for even day-to-day sales to be written down, as has become customary nowadays (viz. the issuance of invoices). Such a procedure, however, has not been made obligatory. Likewise, it is not objectionable if neighbouring shopkeepers do not record the frequent transactions that take place between them. 

330. This means that no person should be compelled to write the document or be its witness. It also means that no party of a dispute should persecute either a scribe or witness for witnessing against the interests of that party.

اِنَّ الَّذِيۡنَ اٰمَنُوۡا وَعَمِلُوا الصّٰلِحٰتِ وَاَقَامُوا الصَّلٰوةَ وَاٰتَوُا الزَّكٰوةَ لَهُمۡ اَجۡرُهُمۡ عِنۡدَ رَبِّهِمۡ​ۚ وَلَا خَوۡفٌ عَلَيۡهِمۡ وَلَا هُمۡ يَحۡزَنُوۡنَ‏ ﴿2:277﴾ يٰۤـاَيُّهَا الَّذِيۡنَ اٰمَنُوا اتَّقُوا اللّٰهَ وَذَرُوۡا مَا بَقِىَ مِنَ الرِّبٰٓوا اِنۡ كُنۡتُمۡ مُّؤۡمِنِيۡنَ‏ ﴿2:278﴾ فَاِنۡ لَّمۡ تَفۡعَلُوۡا فَاۡذَنُوۡا بِحَرۡبٍ مِّنَ اللّٰهِ وَرَسُوۡلِهٖ​ۚ وَاِنۡ تُبۡتُمۡ فَلَـكُمۡ رُءُوۡسُ اَمۡوَالِكُمۡ​ۚ لَا تَظۡلِمُوۡنَ وَلَا تُظۡلَمُوۡنَ‏  ﴿2:279﴾ وَاِنۡ كَانَ ذُوۡ عُسۡرَةٍ فَنَظِرَةٌ اِلٰى مَيۡسَرَةٍ ​ؕ وَاَنۡ تَصَدَّقُوۡا خَيۡرٌ لَّـكُمۡ​ اِنۡ كُنۡتُمۡ تَعۡلَمُوۡنَ‏﴿2:280﴾ وَاتَّقُوۡا يَوۡمًا تُرۡجَعُوۡنَ فِيۡهِ اِلَى اللّٰهِ ثُمَّ تُوَفّٰى كُلُّ نَفۡسٍ مَّا كَسَبَتۡ وَهُمۡ لَا يُظۡلَمُوۡنَ‏ ﴿2:281﴾

(2:277) Truly the reward of those who believe and do righteous deeds and establish Prayer and pay Zakah is with their Lord; they have no reason to entertain any fear or grief.³²² (2:278) Believers! Have fear of Allah and give up all outstanding interest if you do truly believe. (2:279) But if you fail to do so, then be warned of war from Allah and His Messenger.³²³ If you repent even now, you have the right of the return of your capital; neither will you do wrong nor will you be wronged. (2:280) But if the debtor is in straitened circumstance, let him have respite until the time of ease; and whatever you remit by way of charity is better for you, if only you know.³²⁴ (2:281) And have fear of the Day when you shall return to Allah, and every human being shall be fully repaid for whatever (good or evil) he has done, and none shall be wronged. 

Notes

322. In this section God brings into sharp relief two contrasting characters. One is selfish, Mammon-worshipping, a kind of Shylock. He is totally preoccupied with making and accumulating money in total disregard of his obligations to God and his fellow-beings. He counts the money he has saved and is so consumed by the desire to see it multiply that he spends much time estimating how much it will grow in the weeks, months and years to come. The other character is a God-worshipping, generous and compassionate person, ever conscious of the claims of both God and man, ready to spend whatever he earns by the sweat of his brow on himself as well as on other human beings, and devotes a good part of it to philanthropic purposes. 

The first character is strongly denounced by God. No healthy society can exist on the basis of such men, and in the Hereafter, too, they are destined to meet grief and affliction, torment and misery. The latter, by contrast, is a character highly extolled by God, a character which will serve as the basis of a sound and healthy society in this world and will lead man to salvation in the Next.

323. This verse was revealed after the conquest of Makka and has been placed here because of its contextual relevance. Although interest was considered objectionable earlier, it had not been legally prohibited. After the revelation of this verse interest-bearing transactions became a punishable offence within the realm of Islam. The Prophet (peace he on him) warned the Arab tribes through his officials that war would be declared against them if they did not give up interest-bearing transactions. It was specified, for instance, in the agreement under which the Christians of Najran were granted internal autonomy under the suzerainty of the Islamic state, that if they continued to use interest, the agreement with them would be considered void and their action an act of belligerency. On the basis of the last words of the verse, Ibn ‘Abbas, Hasan al-Baari, Ibn Sirin and Rabi’ ibn Anas are of the view that anyone who takes interest within the boundaries of the Islamic State (Dar al-Islam) should be pressed to repudiate the transaction and recant and, if he persists, should be put to death. Others consider it sufficient to imprison such people and keep them in prison until they pledge to give up taking interest. (See Jassas’s commentary, on verse 2: 278; see especially vol. 1, pp. 471 f. – Ed.) 

324. This verse is the basis of the Islamic regulation that if a person has become incapable of paying off his debt, the court will force the creditors to grant him respite for payment. In fact, under certain circumstances, the court is entitled to remit a part of his debt and, at times, the whole of it. It is mentioned in the Hadith that once a person suffered loss in his trade and became greatly burdened with debt and the case was brought to the notice of the Prophet. The Prophet urged the people to help their brother in his distress. They came to his assistance but the amount of help was not enough to wipe out his debts. Then the Prophet approached the lenders and asked them to accept whatever amount was available and to grant remission to the borrower because of his inability to make further payments. Muslim jurists have made it clear that a debtor’s residential house, eating utensils, clothes and the tools which he uses for earning his livelihood may not be confiscated in any, circumstances whatsoever for non-payrment of loans. (For relevant discussion and textual evidence see the commentaries on this verse in Ibn Kathir, Jassas, and Qurtubi – Ed.)

اَلَّذِيۡنَ يَاۡكُلُوۡنَ الرِّبٰوا لَا يَقُوۡمُوۡنَ اِلَّا كَمَا يَقُوۡمُ الَّذِىۡ يَتَخَبَّطُهُ الشَّيۡطٰنُ مِنَ الۡمَسِّ​ؕ ذٰ لِكَ بِاَنَّهُمۡ قَالُوۡۤا اِنَّمَا الۡبَيۡعُ مِثۡلُ الرِّبٰوا​ ۘ​ وَاَحَلَّ اللّٰهُ الۡبَيۡعَ وَحَرَّمَ الرِّبٰوا​ ؕ فَمَنۡ جَآءَهٗ مَوۡعِظَةٌ مِّنۡ رَّبِّهٖ فَانۡتَهٰى فَلَهٗ مَا سَلَفَؕ وَاَمۡرُهٗۤ اِلَى اللّٰهِ​ؕ وَمَنۡ عَادَ فَاُولٰٓـئِكَ اَصۡحٰبُ النَّارِ​ۚ هُمۡ فِيۡهَا خٰلِدُوۡنَ‏  ﴿2:275﴾ يَمۡحَقُ اللّٰهُ الرِّبٰوا وَيُرۡبِى الصَّدَقٰتِ​ؕ وَاللّٰهُ لَا يُحِبُّ كُلَّ كَفَّارٍ اَثِيۡمٍ‏﴿2:276﴾

(2:275) As for those who devour interest,³¹⁵they behave as the one whom Satan has confounded with his touch.³¹⁶ Seized in this state they say: “Buying and selling is but a kind of interest,”³¹⁷ even though Allah has made buying and selling lawful, and interest unlawful.³¹⁸ Hence, he who receives this admonition from his Lord, and then gives up (dealing in interest), may keep his previous gains, and it will be for Allah to judge him.³¹⁹As for those who revert to it, they are the people of the Fire, and in it shall they abide. (2:276) Allah deprives interest of all blessing, whereas He blesses charity with growth.³²⁰Allah loves none who is ungrateful and persists in sin.³²¹

Notes

315. The term riba in Arabic means ‘to grow, to exceed, to increase’. Technically, it denotes the amount that a lender receives from a borrower at a fixed rate of interest. At the time of the revelation of the Qur’an several forms of interest transactions were in vogue and were designated as riba by the Arabs. Of these one was that the vendor sold an article and fixed a time limit for the payment of the price, stipulating that if the buyer failed to pay within the specified period of time, he would extend the time limit but increase the price of the article. Another was that a man loaned a sum of money to another person and stipulated that the borrower should return a specified amount in excess of the amount loaned within a given time limit. A third form of interest transaction was that the borrower and vendor agreed that the former would repay the loan within a certain limit at a fixed rate of interest, and that if he failed to do so within the limit, the lender would extend the time limit, but at the same time would increase the rate of interest. It is to transactions such as these that the injunctions mentioned here apply. 

316. The Arabs used the word majnun (possessed by the jinn) to characterize the insane. The Qur’an uses the same expression about those who take interest. Just as an insane person, unconstrained by ordinary reason, resorts to all kinds of immoderate acts, so does one who takes interest. He pursues his craze for money as if he were insane. He is heedless of the fact that interest cuts the very roots of human love, brotherhood and fellow-feeling, and undermines the welfare and happiness of human society, and that his enrichment is at the expense of the well-being of many other human beings. This is the state of his ‘insanity’ in this world: since a man will rise in the Hereafter in the same state in which he dies in the present world, he will be resurrected as a lunatic. 

317. The unsoundness of this view lies in not differentiating between the profit one gains on investment in commercial enterprises on the one hand, and interest on the other. As a result of this confusion, the proponents of this view argue that if profit on money invested in a business enterprise is permissible, why should the profit accruing on loaned money be deemed unlawful? Similar arguments are advanced by those who thrive on interest in our own times. Their argument runs as follows: A person who could have profitably invested his money in a commercial enterprise loans it out to somebody who, in turn, makes a profit out of it. In such circumstances why should the borrower not pay the lender a part of the profit? Such people, however, disregard the fact that no enterprise in which a man participates, whether it is commercial, industrial or agricultural, and whether one participates in it with one’s organizing skill or capital, or by both, is immune from risk. No enterprise carries absolutely guaranteed profit at a fixed rate. What is the justification, then, for the fact that out of all the people in the business world, the financier alone should be considered entitled to a profit at a fixed rate in all circumstances, and should be protected against all possibility of loss? 

Let us set aside for a moment the questions of non-profitable loans and vacillations in the rate of profit. Let us consider only the question of loans for profitable enterprises, and confine our consideration to loans made at non-exorbitant rates of interest. The question, however, remains: Which rational principle, which logic, which canon of justice and which sound economic principle can justify that those who spend their time, energy, capacity and resources, and whose effort and skill make a business thrive, are not guaranteed profit at any fixed rate, whereas those who merely lend out their funds are fully secured against all risks of loss and are guaranteed profit at a fixed rate? And which principle can justify the fact that a man lends out his funds to an industrial concern and fixes, say for the next twenty years, that he will be entitled to receive each year a given per cent interest on his capital, while the proprietors of the industrial concern have no means of foretelling the price changes affecting their commodity, and hence their profit? Let us consider another case, namely that of war loans. How can it be appropriate that all classes of people endure all kinds of losses and are exposed to all kinds of risks and dangers connected with war, whereas the financiers, simply by having made loans, continue to receive Interest on them for long periods of time, sometimes even for a whole century?

318. The essential difference between non-interest business transactions and interest-bearing transactions rests on the following grounds: 

(1) In ordinary business transactions there occurs a mutually equitable exchange of benefits between the buyer and the seller. The buyer derives benefit from the article which he purchases from the seller; the seller receives compensation for the effort, ingenuity and time spent on making the article available to the buyer. In interest-bearing transactions, on the other hand, the exchange of benefits does not take place equitably. The interest receiving party, receives a fixed amount as a payment for using the loan he advances and thus his gain is secured. The other party to the transaction has only one thing at his disposal – a period of time during which he can make use of the funds loaned, and which may not always yield a profit. If such a person spends the borrowed funds on consumption, there is obviously no question of profit. Even if the funds are invested in trade, agriculture or industry, one stands the chance both of making a profit and of incurring a loss during the period of time in question. Hence an interest-bearing transaction entails either a loss on one side and a profit on the other, or an assured and fixed profit on one side and an uncertain and unspecified profit on the other. 

(2) In business enterprises the profit that a person makes, however large it may be, is made only once. The person who lends out money on interest receives, on the contrary, an on-going profit which multiplies with the passage of time. Moreover, however large the extent of the profit made by the borrower from the loaned money it will still be within certain limits, while the claims of the lender in return for this profit are unlimited. It is even possible that the lender may seize the entire turnover of the borrower if he defaults on payment, thus depriving him of all the resources from which he makes his living. It is also possible that even after the lender has seized all the property of the borrower, his claims will still remain unsatisfied. 

(3) In a business deal, the transaction ends with the exchange between a commodity and its price. After this exchange has taken place, no obligation remains on either party towards the other. If the transaction is that of rent, the thing rented (e.g. land or building) is not consumed but is rather used and remains intact, and is returned to the owner after a stipulated period of time. In a transaction involving interest, however, what actually happens is that the borrower first spends the loaned funds, then reclaims them with his efforts, returning them to the lender together with a surplus. 

(4) In agriculture and industry, and in trade and commerce, one makes a profit after having expended one’s effort, intelligence and time. In an interest-bearing transaction, on the contrary, one becomes entitled to a sizeable share in the earnings of others without any toil and effort, by merely allowing someone to make use of one’s surplus money. The lender is neither a ‘partner’ in the technical sense of the term, for he does not share both the profit and the loss, nor is his share in proportion to the actual profit. 

There is thus a tremendous difference from an economic point of view between business transactions as such and interest- bearing transactions. Whereas the former plays a highly constructive role in human society, the latter leads to its corrosion. This is in addition to its moral implications. By its very nature interest breeds meanness, selfishness, apathy and cruelty towards others. It leads to the worship of money and destroys fellow-feeling and a spirit of altruistic co-operation between man and man. Thus it is ruinous for mankind from both an economic and a moral viewpoint. 

319. What is said here is not that man will be pardoned by God for the interest taken in the past, but that it is for God to judge him. The expression: ‘may keep his previous gains’ does not signify absolute pardon from God for the interest one has taken, rather it points to the legal concession that has been made. It only means that no legal claim will be made for the interest taken in the past. For were such claims to be entertained, an endless succession of litigation would ensue. From a moral point of view, however, the earnings made by way of interest would continue to be impure. If a person is really God-fearing and if his economic and moral viewpoint has really undergone a change under the influence of Islam, he will try to abstain from spending on himself the income which he has obtained by illegitimate means. He will also try to seek out those from whom he has derived illegitimate earnings and will try to return those earnings to such people; if he is unable to locate them, he will try to spend them on collective welfare rather than on himself. It is this conduct alone which can save him from the punishment of God. As for one who continues to enjoy his illegitimate earnings, it is not unlikely that he will be subjected to God’s punishment. 

320. The fact stated in this verse is a truism from a moral and spiritual as well as from an economic and social viewpoint. For, although wealth apparently multiplies through interest and shrinks as a result of charity, in actual fact the opposite is the case. By God’s decree, the law of nature is such that interest not only serves as a strain on moral and spiritual well-being, and social and economic growth, it also causes actual regression and decline. Charity, however, (including such acts as lending money to people with the stipulation that they should return it if they can. and at their convenience) leads to the growth and expansion of man’s moral and spiritual qualities and to the growth of human society and economy. 

Looked at from moral and spiritual standpoints, it is evident that interest is not only the outcome of selfishness, miserliness and callousness but also encourages their growth. Charity, on the other hand, is the outcome of generosity, compassion, large -heartedness and magnanimity, with the result that the more one practises charity the more these qualities develop. It is obvious that if there is a society whose individuals are selfish in their dealings with one another, in which none is prepared to assist the other without self-interest, in which every person considers the other’s need an opportunity to capitalize and exploit, in which the interests of the rich are directly opposed to the interests of the common people, that society does not rest on stable foundations. In such a society, instead of love and compassion there is bound to grow mutual spite and bitterness, apathy, indifference and callousness. The elements which compose such a society are bound to remain inclined towards disintegration and chaos; acute internal conflict and strife are sure to occur. 

Contrast this with the society which is based on mutual sympathy and co-operation, whose individuals deal with one another magnanimously, in which, when a person is in need, people willingly come forward to accord generous help, in which the ‘haves’ assist the ‘have-nots’ with compassion and at least engage in just and equitable co-operation. In such a society mutual cordiality. goodwill and fellow-feeling are bound to flourish. The various components of such a society will be closely knit together and prove a source of mutual support. In such a society internal conflict and strife will make few inroads. Also, owing to mutual co-operation and goodwill the pace of development should be faster than in the other kind of society. 

Let us now look at the matter from an economic viewpoint, from which interest- bearing loans are seen to be of two kinds. The first category, consists of loans incurred by people in genuine need, who are compelled to borrow for their personal consumption requirements. The second consists of the loans incurred by businessmen for investment in trade and industry or agriculture. 

The first category is generally acknowledged to lead to ruin. Nevertheless, there is not one country in the world where financiers and financial institutions are not sucking the blood of poor labourers, peasants and ordinary low-income people through interest on consumption loans. The burden of interest makes it extremely difficult, often impossible, for borrowers to pay off the original loan. They may even have to resort to fresh borrowing from elsewhere to pay if off. Because of the way interest works, the sum outstanding against them often remains even after they, have paid twice or three times its amount in interest. The bulk of the income of labourers is snatched away from them by lenders, leaving them without enough for the bare necessities of life for themselves and their families. This situation steadily erodes their interest in their jobs. For if someone else is to reap the benefit of a man’s hard work, why should he work hard at all? Moreover, oppressed by the worries of debt, the health and strength of labourers is gradually destroyed by undernourishment and lack of medical treatment. 

In short, a minority of people continually fatten themselves by sucking the blood of millions of ordinary people, but the total production level of the people remains much lower than its optimum potential. Ultimately, of course, these exploiters are seldom spared the evil consequences of their actions. Their callous selfishness causes such widespread misery among the masses that anger and resentment against the rich smoulder in their hearts ready to erupt in times of revolutionary unrest. The exploiters then have to pay very dearly: their ill-earned riches are not only wrested from them, they are either killed mercilessly or subjected to ignominy and humiliation. 

The second category of loans, those invested in productive enterprises, also cause harm because of the infliction of a predetermined rate of interest on such borrowings. The most significant are the following: 

(1 ) Projects which do not promise a higher rate of profit than the current rate of interest fail to attract sufficient funds, no matter how useful and necessary they may, be from the viewpoint of larger national interests. Loanable funds flow towards those business enterprises which are likely to yield at least the same, if not a higher rate of profit on investments than the current rate of interest, even though they may be of very little or no benefit to the nation at large. 

(2) There can be no guarantee that a business investment, whether it is in trade, industry or agriculture, will always yield a rate of profit which is higher than the rate of interest. Not only can there be no such assurance, there can never be an assurance about any business that it will always remain profitable. What really happens, therefore, is that the financier is assured interest at a predetermined rate whereas the business in which the loan is invested is exposed to risk and possible losses. 

(3) Since the lender does not share the profit and loss of the business but lends out funds on the assurance of a fixed rate of interest, he is in no way concerned with the fortunes of the business itself. He is solely concerned, and in a totally selfish spirit, with his own pecuniary benefit. Hence, whenever the lender senses the faintest sign of depression, he begins to withdraw money from the market. The result is that sometimes imaginary fears and anxieties spark off an actual depression in the economy. And if the economy is depressed owing to other factors, the excessive selfishness of the financiers tends to escalate the situation into a full-scale economic crisis. These three evils of interest are obvious to every student of economics. Can anyone then deny the truth of the Natural law, enunciated by Allah that interest decreases the national economic wealth? 

Let us now look at the economic effects of charity. Suppose the general attitude of the prosperous members of a society, is that within the limits of their means they spend generously on the fulfilment of their own requirements and on the requirements of their family, and then devote the surplus to helping the poor. After that they, either use their funds to provide interest-free loans to businessmen, invest them in business with the stipulation that they shall be co-sharers in both the profit and loss of the business, or deposit them with the government so that it may use them on projects of public welfare. A little reflection will make it obvious that trade, industry, and agriculture in such a society, will attain maximum prosperity; the standard of living of its people will continually rise and production in it will be much higher than in societies where economic activity is fettered by interest. 

321. It is clear that only those who have a surplus of earnings over their basic requirements can lend out money at interest. This surplus, according to the Qur’an, constitutes God’s bounty. And true thankfulness for this bounty requires that a person should be bountiful towards other creatures of God even as the Creator has been to him. If, instead of doing this, the person tries to become richer at the expense of those whose present earnings are insufficient to meet their needs, he is at once guilty of ungratefulness to God, and blatantly unjust, cruel and wicked.