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What is the definition of Riba of money in Islam?

Answered as per Hanafi Fiqh by DarulIftaBirmingham

Answered by:  Moulana Muhammad Imad Ali​


Assalamu Alaikum Wa Rahmatullah!

What is the definition of ‘interest’ of money in Islam?

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful.


Assalamu Alaikum Wa Rahmatullahi Wa Barakaatuh,

Rasulullah (peace be upon him) said, ‘Every loan that draws a profit is Riba and Haram’.

In Shariah, riba refers to any conditional excess in exchange for deferred payment or any excess in wealth or benefit which is conditioned in the business transaction and is not in lieu of anything. At times the condition is not explicit, however, it is understood through the ‘urf’ (i.e. the business trend and usage). Similarly, in the Shariah, the fuqaha regard the profit acquired through un-Islamic means in the law of riba e.g. the profit acquired through an invalid business transaction i.e. bai’ e faasid.


Only Allah knows best

Written by Moulana Muhammad Imad Ali

Checked and approved by Mufti Mohammed Tosir Miah

Darulifta Birmingham


This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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