Q: What is the definition of riba?
A: In Shariah, riba refers to any conditional excess in exchange of a 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 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.
And Allah Ta’ala (الله تعالى) knows best.
Mufti Zakaria Makada
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)