CAN RIBA BE LEGALIZED TO PUNISH A MAN FOR LATE PAYMENT OF INSTALMENTS?
A RESPONSE BY
MUJLISUL ULAMA OF SOUTH AFRICA
INTRODUCTION
THE TOUCH OF SHAITAAN
“Those who devour riba do not stand except as one whom the Shaitaan
has driven to insanity with (his) touch. That is so because they say: ‘Trade
is only like riba’, whereas Allah has made lawful trade and has made
riba haraam.”
(Qur’aan, Surah Baqarah, Aayat 275) THE BARAKAAT OF SADQAH AND THE RUIN
OF RIBA
“Allah eliminates riba and He increases (the barakaat of) Sadaqaat (Charities).
And Allah does not love any ingrate sinner.”
(Qur’aan, Surah Baqarah, Aayat 276)
SHUN RIBA !
“O People of Imaan! Fear Allah (in the matter of riba), and shun (waive)
what remains of riba (charges), if indeed you are Mu’mineen.”
(Qur’aan, Surah Baqarah, Aayat 277)
ULTIMATUM OF WAR
“And, if you do not (shun riba), then take notice (of an ultimatum of)
war from Allah and His Rasool. Then, if you repent (and desist), then for you
is the capital amounts of your wealth. You shall not oppress (the hard-pressed
with interest), and you will not be dealt with oppressively (with Allah’s
Punishment).”
(Qur’aan, Surah Baqarah, Aayat 279)
The Cover Question:
Is it permissible to charge riba (interest) on a late-payment made by a debtor?
The debtor is unable to pay his instalment on due date. The standard practice
of the kuffaar capitalist system of banks and business enterprises is to charge
a percentage of the instalment as a penalty for late payment. Is this riba
(interest) lawful in the di- vine immutable Shariah of the Qur’aan and
Sunnah?
The Reply:
The four Qur’aanic aayaat appearing on page 2 constitute an adequate
response to this question. Further elucidation for the prohibition of this
form and all forms of riba is really superflu- ous. The Sunnah and the 14 century
Ijma’ (Consensus) of the Ummah on the prohibition of all forms of riba
make it unneces- sary for elaborating what is obvious and self-evident in terms
of the Shariah of the Qur’aan. The straightforward answer is that it
is haraam to charge any riba on late payments of instalments.