What is Riba? And What Are Various References of Riba in Al-Quran?

This article is based entirely on the original research and scholarly work of:

Muhammad Rizwan-ul-Haque -

Founding Chairman, Dawood Family Takaful, CEO of an Investment Bank and Director of a Trust

The content, analysis, Quranic references, and conclusions presented here are derived from his research and writings. Full credit for the intellectual work belongs to the author.

🔗 Original Source / Reference:https://www.linkedin.com/pulse/mention-riba-interest-usury-religion-abrahamic-faiths-haque/

Introduction

Riba is one of the most discussed and, unfortunately, misunderstood concepts in Islamic economics. Linguistically, the Arabic word Riba refers to increase, excess, growth, elevation, or swelling. However, in its ethical and legal sense, Riba represents an unjust increase that leads to exploitation and imbalance within society.

The Qur’an does not address Riba merely as a financial issue, but as a moral, social, and economic disorder that disrupts justice and equality. A deeper understanding of Riba requires reflection upon multiple Quranic verses where the concept of increase (Riba) is discussed in different contexts.

Riba in the Qur’an: Linguistic and Conceptual References

The Qur’an uses the root of the word Riba to describe growth and elevation, often in a neutral or positive physical sense. These references help us understand the linguistic meaning before addressing its prohibition in financial dealings.

Surah-e-Haj, verse no. 5 (Extract): "it was freshened and swelled up and grew every beauteous pair: (22:5).

Similarly, in Surah Al-Mu’minoon (23:50) and Surah Al-Baqarah (2:265), elevation and growth are used to describe fertile land blessed with productivity. These examples clarify that increase itself is not condemned, rather, it is the unjust and exploitative increase that Islam forbids.

Riba as a Moral and Economic Warning

When the Qur’an discusses Riba in financial terms, the tone changes drastically. In Surah Al-Baqarah (2:276), Allah states:

“Allah destroys interest and increases charity and Allah loves not any ungrateful big sinner" (2:276)

This verse establishes a powerful contrast between Riba, which leads to spiritual and societal decay, and charity, which brings real growth and divine blessing.

In Surah Ar-Rum (30:39), Allah further clarifies that wealth gained through exploitative increase does not grow in His sight, while charity given sincerely multiplies in reward. The message is clear: true prosperity does not come from financial manipulation but from ethical conduct and generosity.

Riba Al-Fadl and Clear Prohibitions

The majority of Islamic jurists agree that Riba mentioned in the Qur’an and Hadith includes Riba Al-Fadl, meaning unjust excess or increase. Greater clarity on Riba related to loans, trade, and economic transactions is found in several Quranic passages, including:

• Surah Al-Baqarah (2:274–283)

• Surah Aal-e-Imran (3:130–132)

• Surah An-Nisa (4:160–161)

• Surah Ar-Rum (30:39)

These verses clearly distinguish lawful trade from Riba, while addressing the false justification often made by those who equate interest with business profit.

Loans, Exploitation, and Social Injustice

The Qur’an emphasizes that loans are meant to support those who are financially weak, not to exploit their vulnerability. Riba, on the other hand, enables individuals and institutions to profit from another person’s hardship, leading to widening inequality and injustice.

Allah warns believers that Riba is so severe that it invites a declaration of war from Allah and His Messenger, a warning unmatched by most other prohibitions in Islam.

Riba Across Abrahamic Faiths

The prohibition of Riba is not exclusive to Islam. It is also strongly condemned in other Abrahamic faiths, reinforcing the idea that usury has always been recognized as a moral and social evil, regardless of time or civilization.

A Recipe for Economic Disaster

Those working in finance, banking, economics, and business can clearly witness the devastating impact of interest-based systems. Riba not only destroys individuals through debt but also destabilizes corporations and entire national economies, pushing them toward inequality, recession, and moral decline.

Ignorance or Vested Interests?

Despite clear Quranic guidance, many still argue that modern interest is different from Riba. Such arguments often stem from ignorance or vested interests, rather than sincere reflection. If confusion persists, the Qur’an urges believers to seek Allah’s guidance with humility and honesty.

The Responsibility Lies With Us

Islam provides comprehensive guidance for every aspect of life, including economics. The responsibility lies with us to recognize that interest is Riba, and that removing this curse is essential for restoring justice, balance, and harmony in society.

True prosperity does not lie in multiplying wealth through exploitation, but in walking the path of ethical trade, charity, and accountability before Allah.

Final Reflection

May Allah SWT guide us all to understand the true nature of Riba and protect us from its harmful consequences. Only by abandoning Riba can societies achieve equity, justice, and sustainable economic balance.

Aameen.