Overview  (Verses 130 -132)

Usury: The Way to Inevitable Ruin
 
Believers, do not gorge yourselves on usury, doubling (your money] again and again. Have fear of God, so that you may prosper. Guard yourselves against the Fire which has been prepared for the unbelievers; and obey God and the messenger, that you may be graced with mercy. (Verses 130-132)
 
We have discussed the subject of usury in detail in our commentary on verses 275-81 of sūrah 2, entitled al-Baqarah, or The Cow. Here we will only briefly comment on the subject of multiplication of the principal sum of a loan. Some people in our modern times want to manipulate this verse in order to make lawful what God has forbidden. They say that the prohibition is limited only to excessive usury which leads to the multiplication of the principal amount of money time after time. They further claim that rates of interest of 4, 5, 7 or 9 per cent and similar rates do not lead to any such multiplication. Hence, they argue, they are not included in the prohibition of usury.
 
Let us begin by stating clearly that the reference to multiples is simply a description of something that was happening in life. It is not a condition for the prohibition to operate. The Qur’ānic statement in sūrah 2, The Cow, makes a clear prohibition of all usury. It addresses the believers and bids them “give up what remains outstanding of usury.” (2: 278) It applies to all that exceeds the principal amount, without qualification.
 
Now that we have established this principle, we have a word to say about its description. It is in fact not a description of the usurious transactions which took place in the Arabian peninsula at a particular point in history. It is a description of the horrid system of usury per se, regardless of the rate of interest. When a financial system is based on usury it makes the financial cycle revolve around it. We have to remember that usurious transactions are neither single, isolated transactions nor simple ones. They are both repetitive and compounded. When we add the element of time to these two aspects we find that they inevitably lead to the multiplication of the principal amount time after time.
 
By its very nature, the usury system leads to such multiplication. The description here is not, therefore, limited to transactions known in Arabia at the time of the revelation of this verse. It is characteristic of this system at all times.
 
This system inevitably leads to the corruption of the moral and psychological life of society inasmuch as it corrupts its financial and political life. It has, therefore, a definite and clear influence on the community and all its members.
 
As Islam began to mould the Muslim community, it was keen to ensure a pure psychological and moral life for it, as well as a sound and healthy financial and political basis. The effect of these elements on the battles fought by the Muslim community is well known. Hence, the inclusion of the prohibition of usury within the Qur’ānic commentary on the Battle of Uĥud is readily understood in the context of this complete system. This prohibition is also coupled with an order to fear God in the hope of achieving prosperity, and to guard against hell, the fire prepared for the unbelievers. This is again a most fitting comment. No one who fears God and fears the fire prepared for the unbelievers will gorge himself on usury. No one who believes in God and removes himself from the ranks of unbelievers will ever think of making profit through usury. To believe in God is not simply a word we utter; it is a conscientious following of a system which God has devised in order to be a practical translation of our faith. Believing in God is simply the introduction for this implementation and for shaping the life of the community according to Islamic directives and commands.
 
It is impossible in any case for faith and usury to exist side by side. Wherever usury is adopted as a system the faith of Islam, as a whole, does not exist. There can only be the fire which has been prepared for the unbelievers. Any argument against this is simply futile. The fact that these verses combine the express prohibition of usury with calling on the believers to fear God and guard against the Fire is not a mere coincidence. It is made in order to establish this fact clearly in the minds of Muslims. It is also made in the hope of achieving prosperity through abandoning usury and maintaining fear of God. For prosperity is the natural outcome of fearing God and implementing the Divine method in human life. We have already discussed the catastrophic effects of usury on human society. We have only to remind ourselves of these catastrophic effects in order to recognise the meaning of prosperity in this context, and the fact that it is made conditional on abandoning this hateful system.
 
The final comment here is given in these words: “... Obey God and the messenger, that you may be graced with mercy” This is a general command to obey God and His Messenger which makes mercy conditional on this obedience. As it is given, however, in the form of a comment on the prohibition of usury, it acquires a special significance: God and His Messenger cannot be obeyed in any society which adopts a system of usury. No one who accepts usury in any shape or form is obedient to God and His Messenger. This comment, then, serves as further emphasis to the prohibition.
 
Moreover, this order is particularly relevant to the events of the battle in which the commands of the Prophet were disobeyed. It re-emphasises this obedience as the means to achieve prosperity and benefit by God’s mercy.

Overview  (Verses 130 -132)

Usury: The Way to Inevitable Ruin
 
Believers, do not gorge yourselves on usury, doubling (your money] again and again. Have fear of God, so that you may prosper. Guard yourselves against the Fire which has been prepared for the unbelievers; and obey God and the messenger, that you may be graced with mercy. (Verses 130-132)
 
We have discussed the subject of usury in detail in our commentary on verses 275-81 of sūrah 2, entitled al-Baqarah, or The Cow. Here we will only briefly comment on the subject of multiplication of the principal sum of a loan. Some people in our modern times want to manipulate this verse in order to make lawful what God has forbidden. They say that the prohibition is limited only to excessive usury which leads to the multiplication of the principal amount of money time after time. They further claim that rates of interest of 4, 5, 7 or 9 per cent and similar rates do not lead to any such multiplication. Hence, they argue, they are not included in the prohibition of usury.
 
Let us begin by stating clearly that the reference to multiples is simply a description of something that was happening in life. It is not a condition for the prohibition to operate. The Qur’ānic statement in sūrah 2, The Cow, makes a clear prohibition of all usury. It addresses the believers and bids them “give up what remains outstanding of usury.” (2: 278) It applies to all that exceeds the principal amount, without qualification.
 
Now that we have established this principle, we have a word to say about its description. It is in fact not a description of the usurious transactions which took place in the Arabian peninsula at a particular point in history. It is a description of the horrid system of usury per se, regardless of the rate of interest. When a financial system is based on usury it makes the financial cycle revolve around it. We have to remember that usurious transactions are neither single, isolated transactions nor simple ones. They are both repetitive and compounded. When we add the element of time to these two aspects we find that they inevitably lead to the multiplication of the principal amount time after time.
 
By its very nature, the usury system leads to such multiplication. The description here is not, therefore, limited to transactions known in Arabia at the time of the revelation of this verse. It is characteristic of this system at all times.
 
This system inevitably leads to the corruption of the moral and psychological life of society inasmuch as it corrupts its financial and political life. It has, therefore, a definite and clear influence on the community and all its members.
 
As Islam began to mould the Muslim community, it was keen to ensure a pure psychological and moral life for it, as well as a sound and healthy financial and political basis. The effect of these elements on the battles fought by the Muslim community is well known. Hence, the inclusion of the prohibition of usury within the Qur’ānic commentary on the Battle of Uĥud is readily understood in the context of this complete system. This prohibition is also coupled with an order to fear God in the hope of achieving prosperity, and to guard against hell, the fire prepared for the unbelievers. This is again a most fitting comment. No one who fears God and fears the fire prepared for the unbelievers will gorge himself on usury. No one who believes in God and removes himself from the ranks of unbelievers will ever think of making profit through usury. To believe in God is not simply a word we utter; it is a conscientious following of a system which God has devised in order to be a practical translation of our faith. Believing in God is simply the introduction for this implementation and for shaping the life of the community according to Islamic directives and commands.
 
It is impossible in any case for faith and usury to exist side by side. Wherever usury is adopted as a system the faith of Islam, as a whole, does not exist. There can only be the fire which has been prepared for the unbelievers. Any argument against this is simply futile. The fact that these verses combine the express prohibition of usury with calling on the believers to fear God and guard against the Fire is not a mere coincidence. It is made in order to establish this fact clearly in the minds of Muslims. It is also made in the hope of achieving prosperity through abandoning usury and maintaining fear of God. For prosperity is the natural outcome of fearing God and implementing the Divine method in human life. We have already discussed the catastrophic effects of usury on human society. We have only to remind ourselves of these catastrophic effects in order to recognise the meaning of prosperity in this context, and the fact that it is made conditional on abandoning this hateful system.
 
The final comment here is given in these words: “... Obey God and the messenger, that you may be graced with mercy” This is a general command to obey God and His Messenger which makes mercy conditional on this obedience. As it is given, however, in the form of a comment on the prohibition of usury, it acquires a special significance: God and His Messenger cannot be obeyed in any society which adopts a system of usury. No one who accepts usury in any shape or form is obedient to God and His Messenger. This comment, then, serves as further emphasis to the prohibition.
 
Moreover, this order is particularly relevant to the events of the battle in which the commands of the Prophet were disobeyed. It re-emphasises this obedience as the means to achieve prosperity and benefit by God’s mercy.