Question 1

What is the ruling on interest (riba)?

Accepted Answer

Riba in all its forms is forbidden by the Qur'an, the Sunnah, and the consensus of the Muslim scholars. It includes both ribā al-faḍl (excess in trading the same currency or commodity hand-to-hand) and ribā al-nasīʾah (charging extra for delay, which is the modern bank interest). Allah declared war on those who deal in riba and consider it among the seven destructive sins. Conventional bank loans, mortgages with interest, and credit cards that charge interest all fall under this prohibition. A Muslim must seek halal alternatives such as Islamic financing structures (murābaḥah, ijārah) and avoid working in institutions whose primary income is interest. If one is currently entangled in such transactions, they must repent immediately and exit as soon as practically possible.

Question 2

What is the ruling on interest (riba)?

Accepted Answer

Ribā is forbidden by the Book, the Sunnah, and consensus, and is among the seven destructive sins. It is of two kinds: ribā an-nasī'ah — the increase taken in exchange for a delay in repayment — and ribā al-fadl — the unequal exchange of the six items mentioned in the hadith of ʿUbādah (gold, silver, wheat, barley, dates, salt) hand-to-hand. The first is the ribā of the Jāhiliyyah and is the more severe; the second is the door (dharīʿah) by which the first is reached, and so it was closed. A dirham of ribā that a man knowingly consumes is worse with Allah than thirty-six acts of zinā.

Question 3

Is it permissible to work in a riba-based bank?

Accepted Answer

(Applied from the principles of the Salaf on cooperation in sin.) The Prophet (ﷺ) cursed the consumer of ribā, the one who pays it, the scribe of it, and its two witnesses, and said: "They are equal." Whoever writes the contract, witnesses it, processes it, or makes the system of ribā function, falls under this curse. Work in a ribā-based bank in roles that directly serve ribā transactions is forbidden. Work in roles entirely separate from ribā (security, cleaning, IT systems unrelated to interest contracts) is, by the principle of necessity and the absence of direct cooperation in the prohibited, allowed by some scholars — but the cautious one leaves it.

Question 4

What is the ruling on dealing in cryptocurrencies like Bitcoin?

Accepted Answer

(Applied from his principles on currency, gharar, and qimār.) Shaykh al-Islām established that currency derives its function from being either intrinsically valuable (gold, silver) or established by stable governmental and societal acceptance — and that excessive uncertainty (gharar) and gambling-like speculation are forbidden. Modern cryptocurrencies, in their dominant form, lack the backing of any sovereign authority, swing wildly in value, are widely used in unlawful transactions, and most participants enter them by speculation alone — these are the very ʿillahs of gharar and qimār. So the principles of Shaykh al-Islām indicate prohibition of trading them as a speculative instrument.

Question 5

Why is "Riba" (interest/usury) forbidden in Islamic finance?

Accepted Answer

Riba, which encompasses both usury and interest, is unequivocally forbidden (haram) in Islam and is considered one of the most severe sins. The prohibition is firmly established in the Qur'an and the Sunnah of the Prophet Muhammad (peace and blessings be upon him).

The Permanent Committee for Scholarly Research and Ifta' clarifies that the wisdom behind this prohibition lies in the inherent injustice and exploitation within riba-based transactions. Allah has permitted trade (al-bay'), which involves the exchange of goods and services, risk-taking, and effort, leading to a productive and fair economy. In contrast, riba involves a guaranteed increase on a loan for the lender without any corresponding work, service, or risk. This creates wealth for the lender based solely on the passage of time, at the expense of the borrower, who is often in a position of need.

This practice leads to severe societal harms. It concentrates wealth in the hands of the few, discourages genuine investment and entrepreneurship, and fosters a spirit of greed and selfishness rather than cooperation and mutual support. It is a system where capital grows on its own, detached from the real economy of production and human effort.

Islam prohibits two main types of riba:
1.  **Riba an-Nasi'ah (Riba of Delay):** An increase stipulated on a loan in exchange for deferring its payment. This is the most common form, seen in modern bank loans and credit card interest.
2.  **Riba al-Fadl (Riba of Excess):** An unequal exchange of the same commodity from a specific list of items (e.g., gold for gold, wheat for wheat) when traded at the same time.

The prohibition is a protection for society from economic oppression and a means to encourage justice, charity, and transactions based on mutual consent and equitable risk.

Question 6

Is it permissible to work in jobs involving alcohol, gambling, or interest-based banking?

Accepted Answer

It is haram (forbidden) for a Muslim to take a job in any place that involves activities prohibited by Islamic law. This includes working in establishments that produce or serve alcohol, venues for gambling, and conventional banks that operate on the basis of riba (interest).

The ruling is based on the clear principle of not cooperating in sin. Allah Almighty says in the Qur'an: “...And cooperate in righteousness and piety, but do not cooperate in sin and transgression. And fear Allah. Verily, Allah is Severe in punishment.” (Al-Ma'idah, 5:2). Any employment that supports, facilitates, or participates in a haram activity falls under the category of cooperating in sin.

Regarding interest-based banking, the Prophet (peace and blessings be upon him) cursed everyone involved in the process. Jabir (may Allah be pleased with him) reported that the Messenger of Allah cursed the one who consumes riba, the one who pays it, the writer who records it, and the two who witness it, saying, "They are all the same (in sin)." (Sahih Muslim). This hadith clearly indicates that any role within a riba-based institution, whether as a clerk, accountant, manager, or even a guard, is forbidden as it entails assisting in this major sin.

Similarly, concerning alcohol, the Prophet (peace and blessings be upon him) cursed ten people associated with it, including not only the one who drinks it but also the one who produces it, sells it, serves it, and carries it. This illustrates that any link in the chain of a prohibited substance or activity is also sinful.

Therefore, a Muslim must seek a lawful (halal) source of income and avoid such jobs, putting their trust in Allah for their provision. Earning a smaller amount from a halal source is infinitely better and more blessed than earning a large amount from a haram source.

Question 7

Is cryptocurrency or modern investment halal?

Accepted Answer

The Grand Mufti of the Kingdom of Saudi Arabia, Shaykh Abdul Aziz Al ash-Shaykh, was asked about the ruling on dealing with cryptocurrencies like Bitcoin. He declared that it is haram (forbidden) to trade with them.

The Shaykh explained that the ruling is based on several key principles of Islamic finance. Firstly, these currencies are anonymous and ambiguous (jahalah), and they facilitate illicit activities such as money laundering, drug trafficking, and terrorism financing because there is no oversight from a legitimate authority.

Secondly, he highlighted the element of major uncertainty (gharar) inherent in cryptocurrencies. Their prices are extremely volatile and not tied to any tangible asset or economy. This makes trading them a form of speculation that is indistinguishable from gambling (maysir), which is explicitly forbidden in the Qur'an. The Shaykh noted that people are drawn to them as a "get rich quick" scheme, but this high risk of losing one's entire investment without any underlying productive activity is what makes it prohibited.

Furthermore, from an Islamic legal perspective, a currency must be issued and controlled by the ruling authority (wali al-amr) to ensure its stability and prevent fraud. Since cryptocurrencies are decentralized and not backed by any government or central bank, they do not meet this Shar'i condition. Therefore, they are not considered a legitimate currency in Islam. The Shaykh warned that such dealings could lead to financial ruin for individuals.

Question 8

Is taking loans with interest allowed?

Accepted Answer

All praise is due to Allah. Taking a loan with interest is unequivocally haram (forbidden) in Islam and is considered one of the major sins. This form of transaction is known as Riba, which the Qur'an and Sunnah have explicitly prohibited in the strongest terms. There is a consensus (ijma') among Muslim scholars on its prohibition.

Shaykh Ibn Baz clarified that all loans that stipulate an increase upon the principal amount are a form of Riba, which is forbidden by the explicit texts of the Qur'an and the Sunnah. It makes no difference whether the loan is for personal consumption or for business investment. Any predetermined, guaranteed increase on a loan is Riba.

The severity of this sin is highlighted by the fact that Allah has declared war on those who engage in it. This is a threat not made in relation to other major sins. The prohibition applies equally to the one who gives the interest, the one who takes it, the one who writes the contract, and those who witness it; all are complicit in the sin.

A Muslim should fear Allah and avoid Riba-based transactions entirely. If one is in need of funds, they should seek permissible means, such as taking a qard hasan (an interest-free loan) from friends, family, or Islamic financial institutions, or engaging in permissible forms of trade and partnership. It is not permissible to resort to Riba-based loans except in cases of extreme, life-threatening necessity (darurah) where all other halal avenues have been exhausted, and even then, it should be limited to the absolute minimum required to alleviate the necessity. The definition of 'necessity' is very strict and does not include things like expanding a business, buying a luxury car, or a more expensive house.

Question 9

What is the ruling on riba (interest) in bank accounts, loans, or mortgages?

Accepted Answer

Shaykh Ibn Baz, like all major Salafi scholars, affirmed the strict prohibition of riba (interest) in all its forms, based on clear texts from the Qur'an and Sunnah. This ruling applies to any predetermined excess in a loan or debt, which is the essence of modern bank interest.

Whether it involves receiving interest on savings deposited in a bank or paying interest on loans for cars, houses (mortgages), or personal financing, the transaction is haram. There is no distinction in the prohibition between 'usury' for consumption and 'interest' for commercial purposes; both fall under the general prohibition of riba. The Shaykh explained that dealing in riba is one of the greatest major sins, and those who engage in it are in a state of war with Allah and His Messenger.

Shaykh Ibn Baz would cite the explicit words of Allah and His Prophet as definitive proof. The advice for Muslims living in non-Muslim or Muslim countries where the banking system is interest-based is to avoid these transactions as much as possible. For necessary dealings, such as receiving a salary, one should use a current (non-interest-bearing) account. If interest is unavoidably accrued, it must be disposed of by giving it to charity, not with the intention of reward, but with the intention of cleansing one's wealth from haram earnings. This money cannot be used to pay taxes or for personal benefit. The original depositor does not own this interest money.

Question 10

What is the punishment for zina?

Accepted Answer

Shaykh Ibn Baz clarified that zina (unlawful sexual intercourse) is one of the most heinous sins and major prohibitions in Islam. Its punishment is severe and differs based on the marital status of the offender.

1.  **For an unmarried person (virgin):** The punishment is one hundred lashes and exile from their town for one full year. This applies to both the man and the woman.
2.  **For a married or previously-married person (muhsan):** The punishment is stoning to death (rajm).

This distinction is established from the Qur'an and the Sunnah of the Prophet Muhammad (peace be upon him). The punishment of flogging is mentioned directly in the Qur'an, while the punishment of stoning is established from the authentic Sunnah. The Prophet himself applied the punishment of stoning to married individuals who committed zina, such as in the case of Ma'iz al-Aslami and the Ghamidi woman.

Shaykh Ibn Baz emphasizes that these prescribed legal punishments (hudud) are not to be carried out by individuals. They can only be implemented by the legitimate Islamic ruler or his appointed deputy (such as a qadi or judge) after the crime has been proven according to the strict requirements of Islamic law. This requires either a clear and repeated confession from the perpetrator without any coercion, or the testimony of four credible male witnesses who saw the act itself.

If the conditions for proving the crime are not met, the punishment cannot be carried out in this life, but the sin remains with the individual, who must sincerely repent to Allah.

Transactions

What is the ruling on interest (riba)?

Is it permissible to work in a riba-based bank?

What is the ruling on dealing in cryptocurrencies like Bitcoin?

Why is "Riba" (interest/usury) forbidden in Islamic finance?

Is it permissible to work in jobs involving alcohol, gambling, or interest-based banking?

Is cryptocurrency or modern investment halal?

Is taking loans with interest allowed?

What is the ruling on riba (interest) in bank accounts, loans, or mortgages?

What is the punishment for zina?

Is commercial insurance permissible?

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