Interest (riba,usury):

Interest is refer as fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. According to historian,the lending of "food money" was common place in Middle East civilizations as far back as 5000 BC.. In English it is usually translated as "Interest"or "usury"

Riba originated among the people of the Jaahiliyyah; if a debt became due, they would say to him (the borrower): Give us one hundred (that is due, now), or increase it to one hundred and fifty (and pay later). Then when the one hundred and fifty became due, they would say: Give us one hundred and fifty (now), or increase it to two hundred (and pay later) and so on.

Interest(riba) in Islam:

Is it not amazing that a Muslim will never eat pork because it is haram (unlawful); never marry his mother or sister because it is also haram, yet that same person has no problem devouring riba (e.g. interest, usury)? Did you know that engaging in interest is a major sin which could lead you to Hell?

Interest is haram is because Allah declared it so. It is based on Allah's infinite wisdom that He deems an action to be obligatory or prohibited, prescribing matters in man's best interests, in this life and in the Hereafter, as He is the All-Wise, All-Knowing.

There are many proofs showing that riba is haram and one of the most serious sins in Islam!

Proof from Qur'an:

Shariah strictly prohibits and condemns all forms of Riba and Usury. Riba and interest are inherent elements of a mortgage, hence totally forbidden.Allah (Subhanahu wa Ta'ala) says:
"And Allah has permitted sale and prohibited interest/usury" (Surah Al- Baqarah,275/2)

"Fear Allah and leave out the remains of interest, if you are true believers.If you do not do so,then let it be an announcement of war between Allah and his messenger"(Surah Al-Baqarah, 278-9/2)

"Oh you who believe! Do not consume interest compounded over and over"(Surah Aale- Imraan, 130/3)

"And for their taking riba even though it was forbidden for them, and their wrongful appropriation of other peoples' property, We have prepared for those among them who reject faith a grievous punishment" 4:161

Proof from Bible:

"Do not take interest of any kind from him,but fear your God, so that your countryman may continue to live among you"(Leviticus 25:36)

"If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest"(Exodus22:25)

"Do not charge your brother interest, whether on money or food or anything else that may earn interest."(Deuteronomy 23:19)

Proof from hadiths:

The Ahadeeth of Rasulullah (Sallallahu alayhi wa sallam) explicitly prohibit interest/usury.

Hazrat Jabirradiyallahu anhuhas reported that the Messenger of Allah sallallahu alaihe wasallm cursed the devour-er of usury, its payer, its scribe and its two witnesses. He also said that they were equal (in sin).

Hazrat Abu Hurairah radiyallahu anhu reported that the Holy Prophet sallallahu alaihe wasallm said: A time will certainly come over the people when none will remain who will not devour usury. If he does not devour it, its vapor will overtake him.(Ahmed, Abu Dawood, Nisai, Ibn Majah.)

"It is narrated on the authority of Abdullah Bin Hanzalah that Rasulullah (Sallallahu alayhi wa sallam) said: One dirham of interest/usury which a man consumes while he is aware (of it being interest), is more severe than thirty three counts of adultery" (Mishkaatul Masaabeeh, 2825)