Prohibition of Riba in the Quran

The below verses are from the Holy Quran in order of their revelation.

Surah al-Rum, verse 39

“That which you give as Riba to increase the people’s wealth increases not with God; but that which you give in charity, seeking the goodwill of God, multiplies manifold.” (30: 39)

Surah al-Nisa’, verse 161

“And for their taking Riba although it was forbidden for them, and their wrongful
appropriation of other people’s property. We have prepared for those among them who reject faith a grievous punishment.” (4: 161)

Surah Al-e-Imran, verse 130

“O believers, take not doubled and redoubled Riba, and fear Allah so that you may
prosper. Fear the fire which has been prepared for those who reject faith, and obey Allah and the Prophet so that you may get mercy.” (3: 130)

Surah al-Baqarah

“Those who take 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 just like interest’ while
God has permitted trade and forbidden interest. Hence those who have received the
admonition from their Lord and desist, may keep their previous gains, their case being entrusted to God; but those who revert, shall be the inhabitants of the fire and abide therein forever.” (275)

“Allah deprives Riba of all blessing but blesses charity; He loves not the ungrateful
sinner.” (276)

“O, believers, fear Allah, and give up what is still due to you from Riba if you are
true believers.” (278)

“If you do not do so, then take notice of war from Allah and His Messenger. But,
if you repent, you can have your principal. Neither should you commit injustice nor
should you be subjected to it.” (279)

“And if the debtor is in misery, let him have respite until it is easier, but if you forego it as charity, it is better for you if you realize.” (280)

“And be fearful of the Day when you shall be returned to the Allah, then everybody
shall be paid in full what he has earned and they shall not be wronged.” (281)

Prohibition of Riba in the Sunnah ‘Hadith’

Following are some of the Sunnah ‘Hadith’ (traditions) of the Holy Prophet (PBUH) regarding the prohibition of Riba.

• From Jabir (Gbpwh): “The Prophet (pbuh) cursed the receiver and the payer of interest, the one who records it and the witnesses to the transaction and said: ‘They are all alike [in guilt]’.” (source: Muslim, Kitab al-Musaqat, Bab la‘ni akili al-riba wa mu‘kilihi; also in Tirmidhi and Musnad Ahmad.)
• From Anas ibn Malik (Gbpwh): “The Prophet said: ‘When one of you grants a loan and the borrower offers him a dish, he should not accept it; and if the borrower offers a ride on an animal, he should not ride, unless the two of  them have been previously accustomed to exchanging such favours mutually’.” (source: Baihaqi, 1344 H, Kitab al-Buyu’, Bab kulli qardin jarra manfa‘atan fa huwa riban.)
• Zaid B. Aslam reported that interest in pagan times was of this nature: “When a person owed money to another man for a certain period and the period expired, the creditor would ask: ‘you pay me the amount or pay the extra’. If he paid the amount, it was well and good, otherwise the creditor increased the loan amount and extended the period for payment again.” (source: Malik, 1985 chapter on Riba fiddayn (No. 418), Tradition No. 1362, p. 427.)
• The holy Prophet (Pbuh) announced the prohibition of Riba in express terms at the occasion of his last Hajj, which was the most attended gathering of his Companions. The Prophet said: “Every form of Riba is cancelled; capital indeed is yours which you shall have; wrong not and you shall not be wronged. Allah has given His Commandment totally prohibiting Riba. I start with the amount of Riba which people owe to my uncle Abbas and declare it all cancelled”. He then, on behalf of his uncle, cancelled the total amount of Riba due on his loan capital from his debtors. (source: Al-Khazin, 1955, 1, p. 301.)
• The holy Prophet (Pbuh) said, “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates and salt for salt – like for like, equal for equal, and hand to hand; if the commodities differ, then you may sell as you wish, provided that the exchange is hand to hand.” (source: Muslim, 1981, Kitab al Musaqat, chapter on Riba.)
• Bilal (Gbpwh) once visited the Messenger of Allah (pbuh) with some high quality dates, the Prophet (pbuh) inquired about their source. Bilal explained that he traded two volumes of lower quality dates for one volume of that of the higher quality. The Prophet (pbuh) said: “This is precisely the forbidden Riba! Do not do this. Instead, sell the first type of dates, and use the proceeds to buy the others.” (source: Ibid.)
• A man deputed by the holy Prophet (pbuh) for the collection of Zakat/Ushr from Khyber brought for him dates of very fine quality. Upon the Prophet’s asking him whether all the dates of Khyber were such, the man replied that this was not the case and added that he exchanged a Sa‘a (a measure) of this kind for two or three (of the other kind). The holy Prophet replied: “Do not do so. Sell (the lower quality dates) for dirhams and then use the dirhams to buy better quality dates. (When dates are exchanged against dates) they
  should be equal in weight.” (Ibid.)