Is interest entirely haram or can there be exceptions under neccesity?

Question

A query in similar to a question posted on this site (Is interest-based educational loan allowed? ) (this may seem like a similar question, but from a clear angle).

Allah says: “Those who devour interest will not stand except as stands one whom Satan has driven mad by his touch.” [Sûrah al-Baqarah: 275]

Allah says about one who engages in interest that he should: “take notice of war from Allah and His Messenger.” [Sûrah al-Baqarah: 279]

Paying interest is sinful, just like receiving interest is sinful. The Prophet (peace be upon him) said: “Allah curses the one who consumes interest, the one who pays it, the one who draws up the contract, and the witnesses to the contract, then he said they are same (in sinfulness) ” [Sahîh Muslim]

"O you who believe! Be afraid of Allah and give up what remains due to you from riba, if you are really believers. And if you do not do it, then take a notice of war from Allah and His Messenger." [2:277-278]

"The Messenger of Allah, Sallallahu Alayhi Wasallam, has cursed, 'The one who takes riba, the one who writes it and the one who witnesses it,' and he said, They are equal (in sin)'." (Muslim)

"Riba has seventy three gates, the least of them is like a man who fornicates with his mother. And verily, the worst of riba is the Muslim's honor." (al-Hakim) And he also said, "A dirham that a man spends knowing he gained it from riba is worse than thirty six instances of fornication."

Brothers, I understand the sins gained from accepted deals which interest is a part of, Allah SWT has commanded us to seek knowledge. We can do so by completing education, to complete education in a Western country like the UK, a degree will cost a minimum of £40000 in total excluding living cost.

Now a person might think to earn such an amount of money by working (a job without a degree will have an annual salary of (£9000)). This is a pure annual salary, but that does not mean that such a salary will remain as it is by the end of each year as a person has commitments to rent, food, family, etc. Therefore, if a person is to plan on saving for a degree it will take around five years or more (if it's possible but highly doubtful). Now there are organisations which provide students with educational loans in order to complete their studies, but these loans can have an interest rate set to them.

Islamic banks or normal banks don't give such huge loans to even consider interest free, especially that students don't have stable earnings and low credit scores!

Now this interest is for me to repay. It is not provided with the initial payments made to me, so I am not benefiting from the interest at all, but I do benefit from the loan (to pay university fees)

Now as you seen in my explanation that taking such a loan is life essential to success and have stable earnings to support a family and life expenses, so would I be committing a sin by accepting such a loan as I am not benefiting from the interest at all?

From Abu Hurayrah : The Prophet, , said: "There will certainly come a time for mankind when everyone will take riba and if he does not do so, its dust will reach him." (Abu Dawud, Kitab al-Buyu', Bab fi ijtinabi al-shubuhat; also in Ibn Majah)

Alhamdullah, I believe in god and his messenger, but I know Islam is not a hard religion (for the believers) and there can be exception in some situations within life!

Also If a person takes an interest based loan for a start-up business and then repays that loan, does that mean that all of his profits are related to interest as if they didn't take the loan they may not have had this business to begin with?

Brother and sisters, please explain in detail if I am in the wrong here!

Answer 1

As you mentioned in your question ,verses and hadiths which prohibits usury .. After I asked a Sheikh, he told me to try as much as possible to stay away from usury, and do all what you can to do so. I would like to remind you of Prophet Muhammad's speech peace be upon him:

whoever leaves something for Allah's sake , Allah will reward him with a better thing.

And remember what the Allah said in Quraan:

And whoever fears Allah - He will make for him a way out,And will provide for him from where he does not expect. And whoever relies upon Allah - then He is sufficient for him. Indeed, Allah will accomplish His purpose. Allah has already set for everything a [decreed] extent. (Surat Aţ-Ţalāq)

Answer 2

This is your test from Allah, educating from such a university that you cannot afford is a wordly wish only. Its up to you now to what extend you want to please Allah. Can you for the pleasure of Allah refrain from Riba and find another alternatives or not.Do not forget if you will let go something of this word for Allah's sake , HE shall not let you down, you shall have something better that what you are wishing for(not the way Allah wants).My advice to you would be not to involve in Riba, just for the pleasure of Allah and would see wonders happen in your life (Insha Allah)

Answer 3

I am not a scholar - I believe in Allah and His Messenger (SAW) and am always looking for a way to improve myself and the way that I practise the message so I hope the meaning of my opinion is grasped and that it doesn't conflict with what the messenger of Allah taught. Riba is Haraam which is a fact established - Surat Imran Ayat 186 state "The life of this World is only enjoyment of deception" Someone already posted - From Abu Hurayrah : The Prophet, , said: "There will certainly come a time for mankind when everyone will take riba and if he does not do so, its dust will reach him." (Abu Dawud, Kitab al-Buyu', Bab fi ijtinabi al-shubuhat; also in Ibn Majah) I believe Allah (SWT) has given us the solution in the Surah Al Kahf with the example of the sleepers where they took themselves away from the society to save themselves becoming a corruption of it.
He has also mentioned in Surah Baqarah ayat 185 (even though the context is with regards to Ramadan and fasting) He (SWT) says "Allah desireth for you ease, He desireth not hardship for you" This I believe, is a universal statement across all affairs, therefore the act of dealing with Riba need not be anything but dust as Rasul (SAW) says "everyone will take riba and if he does not do so, its dust will reach him." In life, if we get dust on ourselves we try to clean it off. If we do it for ourselves, then we can help others who are having problems with it to also clean the dust of Riba off themselves then inshallah it can become a community effort, national then international effort. I know this is easier said than done - so May Allah reward all our efforts made with the best intentions

Answer 4

I am persuaded by the modernist scholarly approach to this question, espoused by scholars Fazlur Rahman and Abdullah Saeed. it is simply that what the prophet meant to prohibit was exploitation in finance, excessive debt, and debt slavery for the destitute by unscrupulous money lenders. The myopic approach of the literalists now (all interest = riba) and the ponderous opaque structure of Islamic banking detracts from this essential message.

A great deal of scholarly energy is spent devising Islamic copies of conventional interest bearing mortgages and loans, which provide interest-like returns based on declining balance and deferred sale musharaka structures. The cash flows and risk between conventional mortgages and Islamic ones are similar. Would Allah really care which structure you use? I think not!