Riba is simply the increase in things from specified wealth. It is of two types: Riba Fadhl and Riba Nasiah.
Riba Al-Fadhl
This is selling one type of item for the same type of item that is better in quantity. This is like selling one weight of wheat for one and a quarter weight of wheat, for example. Similarly, selling one kg of rice for one and a half kg rice, or selling one ounce of silver for one ounce and one dirham of silver.
Riba An-Nasiah
This type of Riba has two categories. One is the Riba of jahiliyah (Pre-Islamic Period of Ignorance). This is the type of Riba that Allaah the Almighty prohibited by saying: "0 you who believe! Eat not Riba doubled and multiplied." (Q3[Aal-imran]: 130). In actuality it is a man owing another man a debt on delayed payment. Then, when its fixed term is due, the Iender says to the taker, "You may either pay me back or I will increase the amount of the debt (to give you more time)." So if he does not repay the debt, the lender increases the debt by a percentage of the wealth and he waits for another appointment of time (for him to repay it). This course will continue, until it earns him double compounded interest by exceeding the fixed term until it is multiplied and so on.
Another type of interest of jahiliyah was when someone lends ten dinars for the payment of fifteen dinars on short or along-term credit. The (second category of) Riba An-Nasiah is selling something which involves Riba, like one of the two currencies, or wheat or barley, or rice for another type of rice. This is, for example, if a man sells a weight of rice for a weight of wheat for a fixed term, or a man sells ten dinars of gold for one hundred and twenty dirhams of silver for a fixed term.
Its Rulings
Riba is forbidden by statement of Allaah: "Allaah has permitted trading and forbidden Riba." (Q2[Baqarah1:275). And by His statement: "O you who believe! Eat not Riba doubled and multiplied." (Q3 [Aal-lmran]: 130).
And the statement of the Messenger (salallahu alayhi wa sallam): "Allaah curses the one who accepts Riba (usury and interest), the giver of it, the two witnesses of it, and the one who writes it." (As-haab Sunan, Tirmidhi graded it Sahih). The Prophet (salallahu alayhi wa sallam) also said: "One dirham of Riba that a man devours, while knowing it is Riba, is more severe (in crime) than thirty-six acts of fornication (or adultery)." (Ahmad, with a Sahih Isnad). He further said: "Riba has seventy-three doors. The least one (in sin) is as that of a man who sleeps with his mother and the worst form of Riba is harming the honour of a Muslim." (Al-Hakim, who graded it Sahih). The Messenger of Allaah (salallahu alayhi wa sallam) said: "Keep away from the seven fatalities." It was asked, "What are they, O Messenger of Allaah?" He replied: "Associating others with Allaah, magic, taking a life Allaah has made sacred - except with a just cause, consuming the wealth of orphan, fleeing from the battlefield, and accusing innocent chaste believing women." (Bukhari , Muslim)
This article was culled from the publications of Deen Communication Limited