How Abrahamic Faiths View Riba (Interest): A Comparative Perspective

The concept of Riba, commonly understood as interest or usury, is not unique to Islam. Long before modern banking systems emerged, Judaism, Christianity, and Islam all addressed the ethical implications of charging interest. Examining how these three Abrahamic faiths approached Riba reveals a shared moral concern for justice, fairness, and protection of the vulnerable, despite differences in interpretation and application over time.

Riba / Usury in Christianity

Historical Background

In early Christianity, the charging of interest was viewed as morally unacceptable. By the 4th century, the Roman Church formally declared interest forbidden, considering it exploitative and contrary to Christian ethics.

Medieval Understanding

By the 8th century, the prohibition became even stricter, and charging interest was treated as a crime. The Church interpreted biblical teachings to mean that profiting from lending money violated the principle of brotherhood and charity.

Later Developments

In the 14th century, Pope Clement V reaffirmed the prohibition of interest, reinforcing the Church’s long-standing position against usury (Birnie, 1952).

Modern Shift

However, in 1988, the Church of Scotland declared that charging interest itself is not incompatible with Christianity. But it needs to be determined whether the ‘Rate’, which is being charged, is fair or unjust (as per the ‘study report’ on the ethics of Investment and Banking). 

Riba / Usury in Judaism (Torah / Pentateuch)

Prohibition Among “Brothers”

The Book of Deuteronomy explicitly forbids charging interest to one’s “brother,” while permitting it in dealings with outsiders:

“Thou shalt not lend upon usury to thy brother… Unto a stranger thou mayest lend upon usury.”

Jewish interpretation historically understood “brother” to mean fellow Jews, which allowed interest-based transactions with non-Jews while preserving internal social solidarity.

Interest as Moral Injustice

"If he does not lend money on interest or take increase, if he keeps his hand from iniquity and executes true justice between man and man. If he walks in My statutes and My ordinances so as to deal faithfully - he is righteous and will surely live, declares the Lord God" (Ezakiel 18:8,9).

Riba in Islam (Qur’anic Perspective)

Islam presents the most comprehensive and explicit prohibition of Riba, revealed gradually through multiple Qur’anic verses.

First Revelation – Moral Contrast

Surah Al-Rum (30:39) "That which you give as Riba to increase the peoples' wealth increases not with Allah SWT; but that which you give in charity, seeking the goodwill of Allah SWT, multiplies manifold". (30:39).

Second Revelation – Condemnation

Surah An-Nisa (4:161): "And for their taking Riba even though it was forbidden for them, and their wrongful appropriation of other peoples' property, We have prepared for those among them who reject faith; a grievous punishment". (4:161).

Third Revelation – Strong Warning

Surah Ale-Imran, verses 130-2: "O believers, take not doubled and redoubled Riba, and fear Allah SWT so that you may prosper. Fear the fire which has been prepared for those who reject faith, and obey Allah SWT and the Prophet S.A.W, so that you may receive mercy". (3:130-2).

Final Revelation – Absolute Prohibition

Surah-e-Baqra, verses 275-81: "Those who benefit from Riba shall be raised like those who have been driven to madness by the touch of the Devil; this is because they say: "Trade is like Riba" while Allah SWT has permitted 'trade and forbidden Riba'. Hence those who have received the admonition from their Lord and desist, may have what has already passed, their case being entrusted to Allah SWT; but those who revert shall be the inhabitants of the fire and abide therein forever". (2:275).

"Allah deprives Riba of all blessing but blesses charity; HE loves not the ungrateful sinner". (2:276).

"Those who believe, perform good deeds, establish prayer and pay the zakat, their reward is with their Lord; neither should they have nay fear, nor shall they grieve". (2:277).

"O believers, fear Allah SWT, and give up the Riba that remains outstanding if you are believers". (2:278)

"If you do not do so, then be sure of being at war with Allah SWT and His Messenger. But, if you repent, you can have your principal. Neither should you commit injustice nor should you be subjected to it". (2:279).

"If the debtor is in difficulty, let him have respite until it is easier, but if you forego out of charity, it is better for you if you realize". (2:280).

"And fear the Day when you shall be returned to the Lord and every soul shall be paid in full what it has earned and no one shall be wronged". (2:281).

Analysis of Three Faiths: There are some minor but really important differences between the prohibition of interest by Judaism, Christianity, and Islam. The Torah prohibited charging interest to your "brother", but Jews interpreted "brother" as including only Jews, such that charging interest to non-Jews was accepted. Christianity continued the prohibition, interpreting "brother" as everyone, so no Christian was allowed to charge; However, Christians were allowed by the Church to incur interest. While Islam prohibits both charging interest and incurring interest, unfortunately, the pure Islamic economic model is nowhere in practice.

Despite this clarity, a fully interest-free Islamic economic model remains largely absent from modern financial systems, highlighting the gap between principle and practice.

Conclusion

The prohibition of Riba across Judaism, Christianity, and Islam reflects a shared ethical concern: preventing exploitation and ensuring justice in financial dealings. While interpretations evolved differently, the underlying message remains consistent: wealth should not be generated through the hardship of others. In an era of global financial inequality, revisiting these faith-based perspectives offers valuable insights into ethical and socially responsible finance.

Research Credit

This article is based on research by Muhammad Rizwan-ul Haque, Founding Chairman, Dawood Family Takaful; CEO of an Investment Bank; and Director of a Trust.

The original research can be accessed here: https://www.linkedin.com/pulse/mention-riba-interest-usury-religion-abrahamic-faiths-haque/