“Those who spend their wealth by night and by day, both in secret and openly, will find that their reward is secure with their Lord and that there is no reason for them to entertain any fear or grief. As for those who devour interest, they behave as the one whom Satan has confounded with his touch. Seized in this state they say: ‘Buying and selling is but a kind of interest’, even though Allah has made buying and selling lawful, and interest unlawful. Hence, whosoever receives this admonition from his Lord, and then gives up (taking interest), may keep his previous gains, and it will be for Allah to judge him. Whoever reverts to it, they are the people of the Fire, and there they shall abide. Allah deprives interest of all blessing, whereas He blesses charity with growth. And Allah loves none who is ungrateful and persists in sin.”
(Al-Qur’ān – 2:274-76)
The term riba is an Arabic word; it means ‘to grow, to exceed, to increase’. Technically, it denotes the amount that a lender receives from a borrower at a fixed rate of interest.
There is a difference from economic point of view between business transactions as such and interest-bearing transactions. Whereas the former play a highly constructive role in human society, the latter lead to its corrosion. This is in addition to its moral implications. By its very nature, interest breeds meanness, selfishness, apathy and cruelty towards others. It leads to the worship of money and destroys sympathy, fellow-feeling and all that stands for a morally healthy society.