SURAH AL-BAQARAH (AYAH 271 to 280)

إِنْ تُبْدُوا الصَّدَقَاتِ فَنِعِمَّا هِيَ ۖ وَإِنْ تُخْفُوهَا وَتُؤْتُوهَا الْفُقَرَاءَ فَهُوَ خَيْرٌ لَكُمْ ۚ وَيُكَفِّرُ عَنْكُمْ مِنْ سَيِّئَاتِكُمْ ۗ وَاللَّهُ بِمَا تَعْمَلُونَ خَبِيرٌ {2:271}

[Q2:271] In tubdus sadaqaati fani'immaa hiya wa in tukhfoohaa wa tu'toohal fuqaraaa'a fahuwa khayrul lakum; wa yukaffiru 'ankum min saiyi aatikum; wallaahu bimaa ta'maloona Khabeer.
[Q2:271] If you give alms openly, it is well, and if you hide it and give it to the poor, it is better for you; and this will do away with some of your evil deeds; and ALLAH (SWT) is aware of what you do.

[Q2:271] Jika kamu menampakkan sedekah(mu), maka itu adalah baik sekali. Dan jika kamu menyembunyikannya dan kamu berikan kepada orang-orang fakir, maka menyembunyikan itu lebih baik bagimu. Dan ALLAH (SwT) akan menghapuskan dari kamu sebagian kesalahan-kesalahanmu; dan ALLAH (SwT) mengetahui apa yang kamu kerjakan.

IT IS WELL IF ONE GIVES ALMS OPENLY TO SET AN EXAMPLE FOR OTHERS TO FOLLOW SUIT. EXTRA AND HIDDEN GIVING IN COMPLIANCE WITH THE HOLY PROPHET (ALLAHUMA SALI ALA MUHAMMAD WA ALA ALI MUHAMMAD)'S ADVICE "one hand knows not what the other gives", IS MORE NOBLE BECAUSE IT PROTECTS FROM THE DANGER OF VANITY.

THIS VERSE sanctions both the modes of spending in the way of ALLAH (SWT) - **open and **secret, because ALLAH (SWT) is aware of **the intentions and **the motives of the givers. He gives in return an appropriate recompense in both the cases.

It is, therefore, presumptuous to say that "if one does some act of charity before men, no reward awaits him in his Father's house in heaven." (Matthew 6: 1).

"And this will do away with some of your evil deeds" indicates that THERE ARE SOME GOOD DEEDS, LIKE SPENDING IN THE WAY OF ALLAH (SWT), WHICH EARN FORGIVENESS FROM THE LORD FOR THE SINS SO FAR COMMITTED.

v  Imam Jafar bin Muhammad al Sadiq says:

“Hidden charity appeases the wrath of ALLAH (SWT), does away with the sins as the water puts out the fire, and keeps away several misfortunes.”

v  The Holy Prophet (ALLAHuma sali ala Muhammad wa ala ali Muhammad) has said:

Seven persons shall be allowed to take refuge with ALLAH (SWT) when there will be no other refuge.

(1)     He who rules justly and judges impartially.

(2)     He who grows up in a virtuous family as an embodiment of virtue.

(3)     He who remains attached with the place of worship of ALLAH (SWT), and loves and helps the worshippers.

(4)     He who loves people, and hates the evildoers in order to promote the cause of ALLAH (SWT).

(5)     He who says: "I fear the Lord" whenever a beautiful woman incites him to do that which is forbidden.

(6)     He who gives charity in secret by one hand, not letting the other know it.

(7)     He who prays in secret and sheds tears in fearful awareness of the Lord.

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(2:271) If you practise charity publicly, it is good; but if you give charity secretly to the needy, it is much better for you, *311 for this will expiate many of your sins. *312 Anyhow, Allah is well aware of whatever you do.

*311. If charity is of an obligatory nature it is preferable to dispense it openly. Non-obligatory charity should preferably be dispensed secretly. This principle applies to all acts. As a rule, it is more meritorious to perform obligatory acts openly and non-obligatory acts of goodness, secretly.
*312. The performance of good deeds in secret leads to the continual improvement of one's life and character. One's good qualities develop fully and one's bad qualities gradually wither away. This makes a man so acceptable to God that He pardons the sins that he might have committed. 

لَيْسَ عَلَيْكَ هُدَاهُمْ وَلَٰكِنَّ اللَّهَ يَهْدِي مَنْ يَشَاءُ ۗ وَمَا تُنْفِقُوا مِنْ خَيْرٍ فَلِأَنْفُسِكُمْ ۚ وَمَا تُنْفِقُونَ إِلَّا ابْتِغَاءَ وَجْهِ اللَّهِ ۚ وَمَا تُنْفِقُوا مِنْ خَيْرٍ يُوَفَّ إِلَيْكُمْ وَأَنْتُمْ لَا تُظْلَمُونَ {2:272}

[Q2:272] Laisa 'alaika hudaahum wa laakinnal laaha yahdee mai yashaaa'; wa maa tunfiqoo min khairin fali anfusikum; wa maa tunfiqoona illab tighaaa'a wajhil laah; wa maa tunfiqoo min khairiny yuwaffa ilaikum wa antum laa tuzlamoon.

[Q2:272] To make them walk in the right way is not incumbent on you, but ALLAH (SWT) guides aright whom He pleases; and whatever good thing you spend, it is to your own good; and you do not spend but to seek ALLAH (SWT)'s pleasure; and whatever good things you spend shall be paid back to you in full, and you shall not be wronged.

[Q2:272] Bukanlah kewajibanmu menjadikan mereka mendapat petunjuk, akan tetapi ALLAH (SwT)-lah yang memberi petunjuk (memberi taufik) siapa yang dikehendaki-Nya. Dan apa saja harta yang baik yang kamu nafkahkan (di jalan ALLAH (SwT)), maka pahalanya itu untuk kamu sendiri. Dan janganlah kamu membelanjakan sesuatu melainkan karena mencari keridaan ALLAH (SwT). Dan apa saja harta yang baik yang kamu nafkahkan, niscaya kamu akan diberi pahalanya dengan cukup sedang kamu sedikit pun tidak akan dianiaya (dirugikan).

THE GENERAL POLICY OF ISLAMIC IDEOLOGY IS TO GIVE FREEDOM OF CHOICE TO THE INDIVIDUAL, THEREFORE, ALLAH (SWT), THROUGH HIS MESSENGER, MAKES IT CLEAR THAT NO ONE SHOULD COMPEL ANY ONE TO WALK ON THE RIGHT PATH.

†  WHATEVER we spend, to seek the pleasure of ALLAH (SWT), works out our own good - the common welfare of the society. SO, a portion of Zakat and khums has to be spent, under the directions of a mujtahid, for the general benefit of the community.

It is recommended that to bring the infidels from the darkness of ignorance into the light of faith, charity may also be given to them.

WE SPEND IN THE WAY OF ALLAH (SWT) TO BENEFIT OURSELVES, BECAUSE WHATEVER WE SPEND IS PAID BACK TO US IN FULL.

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(2:272) O Prophet, you are not responsible for their guidance; Allah Himself shows guidance to anyone He pleases. And whatever wealth you spend in charity, it is for your own good. As you spend of your wealth to win Allah's pleasure, you will be given full reward for whatever you spend and you will not be deprived in the least of your rightful due. *313

*313. In the beginning Muslims tended to hesitate in helping either their non-Muslim relatives or other non-Muslims who were in need. They thought that helping Muslims only constituted 'spending in the way of Allah'. This verse rejects this attitude. The purpose of this verse is to point out that Muslims are not responsible for forcing true guidance down the throats of people; conveying the message of Truth to people absolves them of the obligation incumbent upon them. It is, then, for God either to favour the recipients of the message with true perception or not. In addition Muslims should not shrink from helping their relatives in the affairs of the world on the ground that they are not following the true guidance; they will he rewarded by God for whatever help they render to needy persons for the sake of God. 

لِلْفُقَرَاءِ الَّذِينَ أُحْصِرُوا فِي سَبِيلِ اللَّهِ لَا يَسْتَطِيعُونَ ضَرْبًا فِي الْأَرْضِ يَحْسَبُهُمُ الْجَاهِلُ أَغْنِيَاءَ مِنَ التَّعَفُّفِ تَعْرِفُهُمْ بِسِيمَاهُمْ لَا يَسْأَلُونَ النَّاسَ إِلْحَافًا ۗ وَمَا تُنْفِقُوا مِنْ خَيْرٍ فَإِنَّ اللَّهَ بِهِ عَلِيمٌ {2:273}

[Q2:273] Lilfuqaraaa'il lazeena uhsiroo fee sabeelil laahi laa yastatee'oona darban fil ardi yah sabuhumul jaahilu aghniyaaa'a minat ta'affufi ta'rifuhum biseemaahum laa yas'aloonan naasa ilhaafaa; wa maa tunfiqoo min khairin fa innal laaha bihee 'Aleem.

[Q2:273] (Alms are) for the poor who are confined in the way of ALLAH (SWT) -- they cannot go about in the land; the ignorant man thinks them to be rich on account of (their) abstaining (from begging); you can recognise them by their mark; they do not beg from men importunately; and whatever good thing you spend, surely ALLAH (SWT) knows it.

[Q2:273] (Berinfaklah) kepada orang-orang fakir yang terikat (oleh jihad) di jalan ALLAH (SwT); mereka tidak dapat (berusaha) di muka bumi; orang yang tidak tahu menyangka mereka orang kaya karena memelihara diri dari minta-minta. Kamu kenal mereka dengan melihat sifat-sifatnya, mereka tidak meminta kepada orang secara mendesak. Dan apa saja harta yang baik yang kamu nafkahkan (di jalan ALLAH (SwT)), maka sesungguhnya ALLAH (SwT) Maha Mengetahui.

ALMS SHOULD BE GIVEN TO THOSE WHO ARE DEVOTEDLY ABSORBED IN THE SERVICE OF ALLAH (SWT). We can recognise them by [1] the light of contentment and [2] positive acceptance of their mission on their faces. They [3] do not solicit charity, but [4] live from hand to mouth. By stating that only those poor who abstain from begging deserve charity,

±  THIS VERSE, INDIRECTLY, CONDEMNS PROFESSIONAL BEGGARY.

±  "Go about in the land" means seeking sustenance for the family.

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(2:273) Those who are engaged so much in the cause of Allah that they cannot move about in the land to earn their livelihood and are, therefore, in straitened circumstances, specially deserve help. An ignorant person would suppose them to be well off because of their self-respect; you can know their real condition from their faces, for they are not the ones who would beg of people with importunity. And Allah will surely know whatever you will spend on them. *314

*314. The people referred to here are those who, because they had dedicated themselves wholly to serving the religion of God, were unable to earn their livelihood. In the time of the Prophet there was a group of such volunteer workers, known as Ashab al-Suffah, consisting of about three or four hundred people who had forsaken their homes and gone to Madina. They remained at all times in the company, of the Prophet, always at his beck and call to perform whatever service he required of them. They were dispatched by the Prophet on whatever expeditions he wished. Whenever there was nothing to do elsewhere, they stayed in Madina and devoted themseleves to acquiring religious knowledge and imparting it to others. Since they were full-time workers and had no private resources to meet their needs, God pointed out to the Muslims that helping such people was the best way of 'spending in the way of Allah'. 

الَّذِينَ يُنْفِقُونَ أَمْوَالَهُمْ بِاللَّيْلِ وَالنَّهَارِ سِرًّا وَعَلَانِيَةً فَلَهُمْ أَجْرُهُمْ عِنْدَ رَبِّهِمْ وَلَا خَوْفٌ عَلَيْهِمْ وَلَا هُمْ يَحْزَنُونَ {2:274}

[Q2:274] Allazeena yunfiqoona amwaalahum billaili wan nahaari sirranw wa 'alaaniyatan falahum ajruhum 'inda Rabbihim wa laa khawfun 'alaihim wa laa hum yahzanoon.
[Q2:274] (As for) those who spend their property by night and by day, secretly and openly, they shall have their reward from their Lord and they shall have no fear, nor shall they grieve.

[Q2:274] Orang-orang yang menafkahkan hartanya di malam dan di siang hari secara tersembunyi dan terang-terangan, maka mereka mendapat pahala di sisi Tuhannya. Tidak ada kekhawatiran terhadap mereka dan tidak (pula) mereka bersedih hati.

Jalaluddin Suyuti writes in Durr ul Manthur (and all the Sunni scholars agree) THAT THIS VERSE WAS REVEALED in-praise of Ali to glorify his giving of four dirhams in the way of ALLAH (SWT) - **one by night, **one by day, **one secretly and **one openly.

Ø  Ibrahim bin Salih, Muhammad bin Salih, Yusuf bin Bilal, Muhammad bin Harun and Ibna Abbas report the Holy Prophet (ALLAHuma sali ala Muhammad wa ala ali Muhammad)'s saying that this verse was revealed to him in praise of Ali. Ali informed the Holy Prophet (ALLAHuma sali ala Muhammad wa ala ali Muhammad) that he had only four dirhams with him and he gave all of them in the way of ALLAH (SWT)  to seek His pleasure, and he was fully satisfied to know that ALLAH (SWT) had accepted his spending.

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(2:274) Those who spend their wealth secretly and openly by day and night, will have their reward with their Lord, and they have nothing to fear nor grieve.

الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا ۗ وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا ۚ فَمَنْ جَاءَهُ مَوْعِظَةٌ مِنْ رَبِّهِ فَانْتَهَىٰ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ ۖ وَمَنْ عَادَ فَأُولَٰئِكَ أَصْحَابُ النَّارِ ۖ هُمْ فِيهَا خَالِدُونَ {2:275}

[Q2:275] Allazeena yaakuloonar ribaa laa yaqoomoona illaa kamaa yaqoomul lazee yatakhabbatuhush shaitaanu minal mass; zaalika bi annahum qaalooo innamal bai'u mishur ribaa; wa ahallal laahul bai'a wa harramar ribba; faman jaaa'ahoo maw'izatum mir rabbihee fantahaa falahoo maa salafa wa amruhooo ilal laahi wa man 'aada fa ulaaa 'ika Ashaabun naari hum feehaa khaalidoon.

[Q2:275] Those who swallow down usury cannot arise except as one whom Shaitan has prostrated by (his) touch does rise. That is because they say, trading is only like usury; and ALLAH (SWT) has allowed trading and forbidden usury. To whomsoever then the admonition has come from his Lord, then he desists, he shall have what has already passed, and his affair is in the hands of ALLAH (SWT); and whoever returns (to it)-- these are the inmates of the fire; they shall abide in it.

[Q2:275] Orang-orang yang makan (mengambil) riba tidak dapat berdiri melainkan seperti berdirinya orang yang kemasukan setan lantaran (tekanan) penyakit gila. Keadaan mereka yang demikian itu, adalah disebabkan mereka berkata (berpendapat), sesungguhnya jual beli itu sama dengan riba, padahal ALLAH (SwT) telah menghalalkan jual beli dan mengharamkan riba. Orang-orang yang telah sampai kepadanya larangan dari Tuhannya, lalu terus berhenti (dari mengambil riba), maka baginya apa yang telah diambilnya dahulu (sebelum datang larangan); dan urusannya (terserah) kepada ALLAH (SwT). Orang yang mengulangi (mengambil riba), maka orang itu adalah penghuni-penghuni neraka; mereka kekal di dalamnya

Riba literally means a growth or an addition. The additional amount, collected over and above the capital given as a loan, is interest or usury. IT IS AN ABUSE OR A MISUSE OF THE POWER ONE HOLDS OVER THE WEAK OR THE NEEDY, AND THEREFORE, STRICTLY FORBIDDEN.

Ü  Spending in the way of ALLAH (SWT) for the welfare of the human society has been prescribed in the preceding verses. With enough means at one's disposal, it is a sin not to part with some of it in order to help the needy.

Ü  When giving in the way of ALLAH (SWT), as a free gift, under such circumstances, has been prescribed, then those whom ALLAH (SWT) has given enough, must at least lend that which is needed by the needy, without charging any additional payment, BECAUSE practising usury is akin to being confounded by Shaytan, and is tantamount to digging one's own grave.

Inherent in a transaction of usury is the element of enslavement and abuse, BECAUSE a person who is in need of material help cannot pay back more than what he had originally taken; therefore Islam has prohibited usury.

IN THE TRANSACTION OF USURY, BOTH THE GIVERS AND THE TAKERS SUFFER. *The lender, in love of more and more material gains, BECOMES heartless and selfish. *Those who take loans become extravagant and ruin their families. This scenario is diametrically opposed to the very purpose of the religion of Islam - establishment of a fair, kind and welfare-oriented social order. IF THERE IS NO TEMPTATION OF USURY, MATERIAL HELP WILL BE GIVEN TO ONLY THOSE WHO ARE REALLY IN NEED OF IT.

Trade, on the other hand, is a mutual transaction in which both parties feel satisfied, in which both either hope to gain or run the risk of a loss. If financial help is required for business or trading, a different relationship can be structured between the two parties, such as a partnership or some form of sharing profit and loss.

THOSE WHO SAY USURY IS ONLY LIKE TRADING WILL RISE ON THE DAY OF RESURRECTION IN A STATE OF INSANITY, AS THOSE RISE WHOM SHAYTAN HAS PROSTRATED BY HIS TOUCH.

The prohibition took effect from the day this verse was revealed. The usury collected by the lenders prior to the promulgation of this prohibition was allowed to be retained by them.

ä  In banking transactions, the directions of the religious jurist {mujtahid-faqih) should be followed to determine bank charges, commission and profit as fixed or as agreed or as actual dividends.

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(2:275) But those who devour interest *315 become like the one whom Satan has bewitched and maddened by his touch. *316 They have been condemned to this condition because they say, "Trade is just like interest”, *317 whereas Allah has made trade lawful and interest unlawfu1. *318 Henceforth, if one abstains from taking interest after receiving this admonition from his Lord, no legal action will be taken against him regarding the interest he had devoured before; his case shall ultimately go to Allah. *319 But if one repeats the same crime after this, . he shall go to Hell, where he shall abide for ever.

*315. The term riba in Arabic 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. At the time of the revelation of the Qur'an several forms of interest transactions were in vogue and were designated as riba by the Arabs. Of these one was that the vendor sold an article and fixed a time limit for the payment of the price, stipulating that if the buyer failed to pay within the specified period of time, he would extend the time limit but increase the price of the article. Another was that a man loaned a sum of money to another person and stipulated that the borrower should return a specified amount in excess of the amount loaned within a given time limit. A third form of interest transaction was that the borrower and vendor agreed that the former would repay the loan within a certain limit at a fixed rate of interest, and that if he failed to do so within the limit, the lender would extend the time limit, but at the same time would increase the rate of interest. It is to transactions such as these that the injunctions mentioned here apply. 
*316. The Arabs used the word majnun (possessed by the jinn) to characterize the insane. The Qur'an uses the same expression about those who take interest. Just as an insane person, unconstrained by ordinary reason, resorts to all kinds of immoderate acts, so does one who takes interest. He pursues his craze for money as if he were insane. He is heedless of the fact that interest cuts the very roots of human love, brotherhood and fellow-feeling, and undermines the welfare and happiness of human society, and that his enrichment is at the expense of the well-being of many other human beings. This is the state of his 'insanity' in this world: since a man will rise in the Hereafter in the same state in which he dies in the present world, he will be resurrected as a lunatic. 
*317. The unsoundness of this view lies in not differentiating between the profit one gains on investment in commercial enterprises on the one hand, and interest on the other. As a result of this confusion, the proponents of this view argue that if profit on money invested in a business enterprise is permissible, why should the profit accruing on loaned money be deemed unlawful? Similar areuments are advanced by those who thrive on interest in our own times. Their argument runs as follows: A person who could have profitably invested his money in a commercial enterprise loans it out to somebody who, in turn, makes a profit out of it. In such circumstances why should the borrower not pay the lender a part of the profit? Such people, however, disregard the fact that no enterprise in which a man participates, whether it is commercial, industrial or agricultural, and whether one participates in it with one's organizing skill or capital, or by both, is immune from risk. No enterprise carries absolutely guaranteed profit at a fixed rate. What is the justification, then, for the fact that out of all the people in the business world, the financier alone should be considered entitled to a profit at a fixed rate in all circumstances, and should be protected against all possibility of loss?
Let us set aside for a moment the questions of non-profitable loans and vacillations in the rate of profit. Let us consider only the question of loans for profitable enterprises, and confine our consideration to loans made at non-exorbitant rates of interest. The question, however, remains: Which rational principle, which logic, whch canon of justice and which sound economic principle can justify that those who spend their time, energy, capacity and resources, and whose effort and skill make a business thrive, are not guaranteed profit at any fixed rate, whereas those who merely lend out their funds are fully secured against all risks of loss and are guaranteed profit at a fixed rate? And which principle can justify the fact that a man lends out his funds to an industrial concern and fixes, say for the next twenty years, that he will be entitled to receive each year a given per cent interest on his capital, while the proprietors of the industrial concern have no means of foretelling the price changes affecting their commodity, and hence their profit? Let us consider another case, namely that of war loans. How can it be appropriate that all classes of people endure all kinds of losses and are exposed to all kinds of risks and dangers connected with war, whereas the financiers, simply by having made loans, continue to receive Interest on them for long periods of time, sometimes even for a whole century?
*318. The essential difference between non-interest business transactions and interest-bearing transactions rests on the following grounds:
(1) In ordinary business transactions there occurs a mutually equitable exchange of benefits between the buyer and the seller. The buyer derives benefit from the article which he purchases from the seller; the seller receives compensation for the effort, ingenuity and time spent on making the article available to the buyer. In interest-bearing transactions, on the other hand, the exchange of benefits does not take place equitably. The interest receiving party, receives a fixed amount as a payment for using the loan he advances and thus his gain is secured. The other party to the transaction has only one thing at his disposal - a period of time during which he can make use of the funds loaned, and which may not always yield a profit. If such a person spends the borrowed funds on consumption, there is obviously no question of profit. Even if the funds are invested in trade, agriculture or industry, one stands the chance both of making a profit and of incurring a loss during the period of time in question. Hence an interest-bearing transaction entails either a loss on one side and a profit on the other, or an assured and fixed profit on one side and an uncertain and unspecified profit on the other. 
(2) In business enterprises the profit that a person makes, however large it may be, is made only once. The person who lends out money on interest receives, on the contrary, an on-going profit which multiplies with the passage of time. Moreover, however large the extent of the profit made by the borrower from the loaned money it will still be within certain limits, while the claims of the lender in return for this profit are unlimited. It is even possible that the lender may seize the entire turnover of the borrower if he defaults on payment, thus depriving him of all the resources from which he makes his living. It is also possible that even after the lender has seized all the property of the borrower, his claims will still remain unsatisfied. 
(3) In a business deal, the transaction ends with the exchange between a commodity and its price. After this exchange has taken place, no obligation remains on either party towards the other. If the transaction is that of rent, the thing rented (e.g. land or building) is not consumed but is rather used and remains intact, and is returned to the owner after a stipulated period of time. In a transaction involving interest, however, what actually happens is that the borrower first spends the loaned funds, then reclaims them with his efforts, returning them to the lender together with a surplus. 
(4) In agriculture and industry, and in trade and commerce, one makes a profit after having expended one's effort, intelligence and time. In an interest-bearing transaction, on the contrary, one becomes entitled to a sizeable share in the earnings of others without any toil and effort, by merely allowing someone to make use of one's surplus money. The lender is neither a 'partner' in the technical sense of the term, for he does not share both the profit and the loss, nor is his share in proportion to the actual profit.
There is thus a tremendous difference from an economic point of view between business transactions as such and interest- bearing transactions. Whereas the former plays a highly constructive role in human society, the latter leads 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 fellow-feeling and a spirit of altruistic co-operation between man and man. Thus it is ruinous for mankind from both an economic and a moral viewpoint. 
*319. What is said here is not that man will be pardoned by God for the interest taken in the past, but that it is for God to judge him. The expression: 'may keep his previous gains' does not signify absolute pardon from God for the interest one has taken, rather it points to the legal concession that has been made. It only means that no legal claim will be made for the interest taken in the past. For were such claims to be entertained, an endless succession of litigation would ensue. From a moral point of view, however, the earnings made by way of interest would continue to be impure. If a person is really God-fearing and if his economic and moral viewpoint has really undergone a change under the influence of Islam, he will try to abstain from spending on himself the income which he has obtained by illegitimate means. He will also try to seek out those from whom he has derived illegitimate earnings and will try to return those earnings to such people; if he is unable to locate them, he will try to spend them on collective welfare rather than on himself. It is this conduct alone which can save him from the punishment of God. As for one who continues to enjoy his illegitimate earnings, it is not unlikely that he will be subjected to God's punishment. 

يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ ۗ وَاللَّهُ لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ {2:276}

[Q2:276] Yamhaqul laahur ribaa wa yurbis sadaqaat; wallaahu laa yuhibbu kulla kaffaarin aseem.

[Q2:276] ALLAH (SWT) does not bless usury, and He causes charitable deeds to prosper, and ALLAH (SWT) does not love any ungrateful sinner.

[Q2:276] ALLAH (SwT) memusnahkan riba dan menyuburkan sedekah. Dan ALLAH (SwT) tidak menyukai setiap orang yang tetap dalam kekafiran, dan selalu berbuat dosa.

Mahaq means *to blot out, *to render unfortunate, *to withdraw one's blessings from ALLAH (SWT).  HE does not bless usury, and He causes charitable deeds to prosper. The act of usury itself lights the fuse of the ultimate destruction of the system that builds, supports and perpetrates it.

r  ACCORDING TO THE HOLY PROPHET (ALLAHUMA SALI ALA MUHAMMAD WA ALA ALI MUHAMMAD), HE WHO UPHOLDS USURY AS PERMISSIBLE IS A KAFIR.

It is generally known among the Muslims that to use the gains obtained from usury is as wicked AND as satanic as marrying one's own mother.

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(2:276) Allah deprives interest of all blessing and develops charity; *320 and Allah does not like an ungrateful, sinful person. *321

*320. The fact stated in this verse is a truism from a moral and spiritual as well as from an economic and social viewpoint. For, although wealth apparently multiplies through interest and shrinks as a result of charity, in actual fact the opposite is the case. By God's decree, the law of nature is such that interest not only serves as a strain on moral and spiritual well-being, and social and economic growth, it also causes actual regression and decline. Charity, however, (including such acts as lending money to people with the stipulation that they should return it if they can. and at their convenience) leads to the growth and expansion of man's moral and spiritual qualities and to the growth of human society and economy.
Looked at from moral and spiritual standpoints, it is evident that interest is not only the outcome of selfishness, miserliness and callousness but also encourages their growth. Charity, on the other hand, is the outcome of generosity, compassion, large -heartedness and magnanimity, with the result that the more one practises charity the more these qualities develop. It is obvious that if there is a society whose individuals are selfish in their dealings with one another, in which none is prepared to assist the other without self-interest, in which every person considers the other's need an opportunity to capitalize and exploit, in which the interests of the rich are directly opposed to the interests of the common people, that society does not rest on stable foundations. In such a society, instead of love and compassion there is bound to grow mutual spite and bitterness, apathy, indifference and callousness. The elements which compose such a society are bound to remain inclined towards disintegration and chaos; acute internal conflict and strife are sure to occur.
Contrast this with the society which is based on mutual sympathy and co-operation, whose individuals deal with one another magnanimously, in which, when a person is in need, people willingly come forward to accord generous help, in which the 'haves' assist the 'have-nots' with compassion and at least engage in just and equitable co-operation. In such a society mutual cordiality, goodwill and fellow-feeling are bound to flourish. The various components of such a society will be closely knit together and prove a source of mutual support. In such a society internal conflict and strife will make few inroads. Also, owing to mutual co-operation and goodwill the pace of development should be faster than in the other kind of society.
Let us now look at the matter from an economic viewpoint, from which inte rest- bearing loans are seen to be of two kinds. The first category, consists of loans incurred by people in genuine need, who are compelled to borrow for their personal consumption requirements. The second consists of the loans incurred by businessmen for investment in trade and industry or agriculture. 
The first category is generally acknowledged to lead to ruin. Nevertheless, there is not one country in the world where financiers and financial institutions are not sucking the blood of poor labourers, peasants and ordinary low-income people through interest on consumption loans. The burden of interest makes it extremely difficult, often impossible, for borrowers to pay off the original loan. They may even have to resort to fresh borrowing from elsewhere to pay if off. Because of the way interest works, the sum outstanding against them often remains even after they, have paid twice or three times its amount in interest. The bulk of the income of labourers is snatched away from them by lenders, leaving them without enough for the bare necessities of life for themselves and their families. This situation steadily erodes their interest in their jobs. For if someone else is to reap the benefit of a man's hard work, why should he work hard at all? Moreover, oppressed by the worries of debt, the health and strength of labourers is gradually destroyed by undernourishment and lack of medical treatment.
In short, a minority of people continually fatten themselves by sucking the blood of millions of ordinary people, but the total production level of the people remains much lower than its optimum potential. Ultimately, of course, these exploiters are seldom spared the evil consequences of their actions. Their callous selfishness causes such widespread misery among the masses that anger and resentment against the rich smoulder in their hearts ready to erupt in times of revolutionary unrest. The exploiters then have to pay very dearly: their ill-earned riches are not only wrested from them, they are either killed mercilessly or subjected to ignominy and humiliation. 
The second category of loans, those invested in productive enterprises, also cause harm because of the infliction of a predetermined rate of interest on such borrowings. The most significant are the following: 
(1) Projects which do not promise a higher rate of profit than the current rate of interest fail to attract sufficient funds, no matter how useful and necessary they may, be from the viewpoint of larger national interests. Loanable funds flow towards those business enterprises which are likely to yield at least the same, if not a higher rate of profit on investments than the current rate of interest, even though they may be of very little or no benefit to the nation at large. 
(2) There can be no guarantee that a business investment, whether it is in trade, industry or agriculture, will always yield a rate of profit which is higher than the rate of interest. Not only can there be no such assurance, there can never be an assurance about any business that it will always remain profitable. What really happens, therefore, is that the financier is assured interest at a predetermined rate whereas the business in which the loan is invested is exposed to risk and possible losses. 
(3) Since the lender does not share the profit and loss of the business but lends out funds on the assurance of a fixed rate of interest, he is in no way concerned with the fortunes of the business itself. He is solely concerned, and in a totally selfish spirit, with his own pecuniary benefit. Hence, whenever the lender senses the faintest sign of depression, he begins to withdraw money from the market. The result is that sometimes imaginary fears and anxieties spark off an actual depression in the economy. And if the economy is depressed owing to other factors, the excessive selfishness of the financiers tends to escalate the situation into a full-scale economic crisis. These three evils of interest are obvious to every student of economics. Can anyone then deny the truth of the Natural law, enunciated by Allah that interest decreases the national economic wealth?
Let us now look at the economic effects of charity. Suppose the general attitude of the prosperous members of a society, is that within the limits of their means they spend generously on the fulfilment of their own requirements and on the requirements of their family, and then devote the surplus to helping the poor. After that they, either use their funds to provide interest-free loans to businessmen, invest them in business with the stipulation that they shall be co-sharers in both the profit and loss of the business, or deposit them with the government so that it may use them on projects of public welfare. A little reflection will make it obvious that trade, industry, and agriculture in such a society, will attain maximum prosperity; the standard of living of its people will continually rise and production in it will be much higher than in societies where economic activity is fettered by interest. 
*321. It is clear that only those who have a surplus of earnings over their basic requirements can lend out money at interest. This surplus, according to the Qur'an, constitutes God's bounty. And true thankfulness for this bounty requires that a person should be bountiful towards other creatures of God even as the Creator has been to him. If, instead of doing this, the person tries to become richer at the expense of those whose present earnings are insufficient to meet their needs, he is at once guilty of ungratefulness to God, and blatantly unjust, cruel and wicked. 

إِنَّ الَّذِينَ آمَنُوا وَعَمِلُوا الصَّالِحَاتِ وَأَقَامُوا الصَّلَاةَ وَآتَوُا الزَّكَاةَ لَهُمْ أَجْرُهُمْ عِنْدَ رَبِّهِمْ وَلَا خَوْفٌ عَلَيْهِمْ وَلَا هُمْ يَحْزَنُونَ{2:277}

[Q2:277] Innal lazeena aamanoo wa amilus saalihaati wa aqaamus salaata wa aatawuz zakaata lahum ajruhum 'inda rabbihim wa laa khawfun 'alaihim wa laa hum yahzanoon.
[Q2:277] Surely they who believe and do good deeds and keep up prayer and pay the poor-rate they shall have their reward from their Lord, and they shall have no fear, nor shall they grieve.

[Q2:277] Sesungguhnya orang-orang yang beriman, mengerjakan amal saleh, mendirikan sembahyang dan menunaikan zakat, mereka mendapat pahala di sisi Tuhannya. Tidak ada kekhawatiran terhadap mereka dan tidak (pula) mereka bersedih hati.

THOSE WHO BELIEVE IN ALLAH (SWT), DO GOOD DEEDS, KEEP UP THE SALAT, AND PAY ZAKAT WILL HAVE NO FEAR NOR WILL GRIEVE ON THE DAY OF JUDGEMENT. Those who have strayed off this divine path will encounter fear and grief.

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(2:277) As to those who believe and do good deeds, establish the Salat and pay the Zakat, they will most surely have their reward with their Lord and they will have nothing to fear nor to grieve. *322

*322. In this section God brings into sharp relief two contrasting characters. One is selfish, Mammon-worshipping, a kind of Shylock. He is totally preoccupied with making and accumulating money in total disregard of his obligations to God and his fellow-beings. He counts the money he has saved and is so consumed by the desire to see it multiply that he spends much time estimating how much it will grow in the weeks, months and years to come. The other character is a God-worshipping, generous and compassionate person, ever conscious of the claims of both God and man, ready to spend whatever he earns by the sweat of his brow on himself as well as on other human beings, and devotes a good part of it to philanthropic purposes.
The first character is strongly denounced by God. No healthy society can exist on the basis of such men, and in the Hereafter, too, they are destined to meet grief and affliction, torment and misery. The latter, by contrast, is a character highly extolled by God, a character which will serve as the basis of a sound and healthy society in this world and will lead man to salvation in the Next. 

يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ {2:278}

[Q2:278] Yaaa ayyuhal lazeena aamanut taqul laaha wa zaroo maa baqiya minar ribaaa in kuntum mu'mineen.
[Q2:278] O’ you who believe! Be careful of (your duty to) ALLAH (SWT) and relinquish what remains (due) from usury, if you are believers.

[Q2:278] Hai orang-orang yang beriman, bertakwalah kepada ALLAH (SwT) dan tinggalkan sisa riba (yang belum dipungut) jika kamu orang-orang yang beriman.

Historically, THIS VERSE INSTRUCTS THE FAITHFUL TO STOP TAKING USURY on what they have already put into that system, once they have clearly seen its wickedness and satanic touch.

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(2:278) O Believers, fear Allah and give up that interest which is still due to you, if you are true Believers;

فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ ۖ وَإِنْ تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ {2:279}

[Q2:279] Fail lam taf'aloo faazanoo biharbim minal laahi wa Rasoolihee wa in tubtum falakum ru'oosu amwaalikum laa tazlimoona wa laa tuzlamoon.

[Q2:279] But if you do (it) not, then be apprised of war from ALLAH (SWT) and His Messenger; and if you repent, then you shall have your capital; neither shall you make (the debtor) suffer loss, nor shall you be made to suffer loss.

[Q2:279] Maka jika kamu tidak mengerjakan (meninggalkan sisa riba), maka ketahuilah, bahwa ALLAH (SwT) dan Rasul-Nya akan memerangimu. Dan jika kamu bertobat (dari pengambilan riba), maka bagimu pokok hartamu; kamu tidak menganiaya dan tidak (pula) dianiaya. 

THERE IS NO NEUTRAL STANDING SPACE BETWEEN GOOD AND BAD ACTIONS. If the faithful do not desist from usury, they will bear the consequences of making war against ALLAH (SWT) and His messenger.

Fadhanu means "be warned of" a war from ALLAH (SWT) and His messenger.

Ø  Imam Ali ibne Abi Talib says:

The Holy Prophet (ALLAHuma sali ala Muhammad wa ala ali Muhammad) not only cursed the giver, the receiver, and the consumer of the usury but also condemned those who write and witness the transaction of usury.

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(2:279) but if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger. *323 If, however, you repent even now (and forego interest), you are entitled to your principal; do no wrong, and no wrong will be done to you.

*323. This verse was revealed after the conquest of Makka and has been placed here because of its contextual relevance. Although interest was considered objectionable earlier, it had not been legally prohibited. After the revelation of this verse interest-bearing transactions became a punishable offence within the realm of Islam. The Prophet (peace he on him) warned the Arab tribes through his officials that war would be declared against them if they did not give up interest-bearing transactions. It was specified, for instance, in the agreement under which the Christians of Najran were granted internal autonomy under the suzerainty of the Islamic state, that if they continued to use interest, the agreement with them would be considered void and their action an act of belligerency. On the basis of the last words of the verse, Ibn 'Abbas, Hasan al-Baari, Ibn Sirin and Rabi' ibn Anas are of the view that anyone who takes interest within the boundaries of the Islamic State (Dar al-Islam) should be pressed to repudiate the transaction and recant and, if he persists, should be put to death. Others consider it sufficient to imprison such people and keep them in prison until they pledge to give up taking interest. (See Jassas's commentary, on verse 2: 278; see especially vol. 1, pp. 471 f. - Ed.) 

وَإِنْ كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَىٰ مَيْسَرَةٍ ۚ وَأَنْ تَصَدَّقُوا خَيْرٌ لَكُمْ ۖ إِنْ كُنْتُمْ تَعْلَمُونَ {2:280}

[Q2:280] Wa in kaana zoo 'usratin fanaziratun ilaa maisarah; wa an tasaddaqoo khairul lakum in kuntum ta'lamoon.

[Q2:280] And if (the debtor) is in straitness, then let there be postponement until (he is in) ease; and that you remit (it) as alms is better for you, if you knew.

[Q2:280] Dan jika (orang berutang itu) dalam kesukaran, maka berilah tangguh sampai dia berkelapangan. Dan menyedekahkan (sebagian atau semua utang) itu, lebih baik bagimu, jika kamu mengetahui.

IF THE DEBTOR IS IN CRISIS, the demand for repayment should be postponed till he is in a better situation. The helpless poor must not be prosecuted and harassed. IT IS BETTER, IN SUCH CASES, if one can, to postpone demanding payment forever, because one is only here for a short while.

§  The Holy Prophet (ALLAHuma sali ala Muhammad wa ala ali Muhammad) said:

He who grants a *respite to his debtor, or *gives up a part or the whole of the principal (given to him in cash or kind), will be allowed to take refuge with ALLAH (SWT) on the day when there will be no shelter.

DURING THE PERIOD OF POSTPONEMENT, THE REPAYABLE DEBT WILL BE TREATED AS CHARITY GIVEN BY THE LENDER TO THE DEBTOR, TILL IT IS REPAID.

Ø  Zarara came to Imam Jafar bin Muhammad al Sadiq and informed him that one of Zarara's debtors was selling his house to repay his debt.

The Imam said: "O Zarara! In the name of merciful Lord I direct you not to render him shelterless."

ISLAM INSTRUCTS THE CREDITORS TO GIVE RESPITE AND REMISSION TO THE DEBTORS AND WARNS THE DEBTORS NOT TO AVOID REPAYMENT IF THEY OWN SUFFICIENT MEANS.

r  It is reported that once a corpse was brought into the masjid for the final rites.

Ì  The Holy Prophet (ALLAHuma sali ala Muhammad wa ala ali Muhammad) refused to conduct the funeral prayer BECAUSE the deceased had sufficient means at his disposal but did not repay his debt. Then and there Abu Qatadah paid the full amount on behalf of the deceased, after which the Holy Prophet (ALLAHuma sali ala Muhammad wa ala ali Muhammad) prayed his funeral prayer.

The Holy Prophet (ALLAHuma sali ala Muhammad wa ala ali Muhammad) made it known that ALLAH (SWT) dislikes those who neither repay their debts before death overcome them nor leave behind anything to meet their commitment of repayment on their behalf.

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(2:280) If your debtor be in straitened circumstances, give him time till his monetary condition becomes better. But if you remit the debt by way of charity, it would be better for you, if you only knew it. *324

*324. This verse is the basis of the Islamic regulation that if a person has become incapable of paying off his debt, the court will force the creditors to grant him respite for payment. In fact, under certain circumstances, the court is entitled to remit a part of his debt and, at times, the whole of it. It is mentioned in the Hadith that once a person suffered loss in his trade and became greatly burdened with debt and the case was brought to the notice of the Prophet. The Prophet urged the people to help their brother in his distress. They came to his assistance but the amount of help was not enough to wipe out his debts. Then the Prophet approached the lenders and asked them to accept whatever amount was available and to grant remission to the borrower because of his inability to make further payments. Muslim jurists have made it clear that a debtor's residential house, eating utensils, clothes and the tools which he uses for earning his livelihood may not be confiscated in any, circumstances whatsoever for non-payrment of loans. (For relevant discussion and textual evidence see the commentaries on this verse in Ibn Kathir, Jassas, and Qurtubi - Ed.)