Is Interest Inevitable?

I always hear that one should not take or give interest. My question is, how can you start a business or deploy industry or for that matter do anything that requires capital without paying interest? Actually if you think about it, we are all getting affect by interest one way or other. Our governments go out and borrow money from IMF to pay its bills and give money to the banks for borrowing? So if the government is>borrowing money you can understand the impact it has on all citizens of that country. Please help me understand how you can setup any business in this world without borrowing money (paying interest) unless of course you are Bill Gates.

In the name of Allah, Most Compassionate, Most Merciful,

Borrowing money on interest is decisively unlawful (haram), as can be seen clearly from the many texts of the Qur’an and Sunnah. Interest corrupts the moral, ethical, spiritual and economic values of a Muslim. Thus, it will be sinful for one to borrow money on interest regardless of whether one borrows the money for personal needs or to set up a business.

It is true that unfortunately the whole financial system of the world is based on interest, but that does not justify being involved in interest. It is in fact a test from Allah Most High as to whether the servant obeys His command and resists all temptations of being involved in interest or whether he gets embedded in the materialistic life around him.

Allah Most High says:

“And those who strive in Our (cause), We will certainly guide them to Our Paths: For verily Allah is with those who do right.” (Surah al-Ankabut, XXIX: 69)

Therefore, rather than try and justify the taking and giving of interest, one should actively strive in solving the problem. It may indeed be difficult in these times to do business without getting yourself involved in interest but it is not impossible. One may take out an interest-free loan (and now we do have certain financial institutions giving interest-free loans), or survive on less in this world and save the rest for the hereafter.

A Muslim hits the lowest level of his faith when they try to justify something that is categorically forbidden by Allah and His beloved Messenger (Allah bless him and give him peace). Thus, it is very important that we do not complain about a particular injunction of Shari’ah, rather we find means and ways to save one’s self from falling into the sin.

I would recommend for further reading “The Historic Judgment on Interest” by Shaykh Taqi Usmani (Allah preserve him). May Allah Almighty save us all from being involved in interest and other such sins, Ameen.

And Allah knows best

Muhammad ibn Adam al-Kawthari
Darul Iftaa, Leicester, UK