Response to Confusion About Riba

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In this video, we address the common misconceptions about Riba (interest), which is often mistakenly thought to be solely about exploitation, financial outcomes, or unrelated to modern banking practices. In reality, Riba fundamentally involves any excess in specific transactions. We'll delve into key narrations to clarify these misunderstandings and distinguish between legitimate and illegitimate profit in Islam.

Is Exploitation the Reason for the Prohibition of Riba?

Some argue that riba (interest) is only prohibited because it exploits others, suggesting that small amounts of riba could be acceptable. This mirrors what Christians did: claiming large amounts of riba (which they call usury) are haram due to exploitation, but small amounts (called interest) are halal.

So let's make this clear—whether it's a small or large amount, exploitation or not, all riba is haram. Why? To prevent any possibility of injustice and exploitation. By adding the condition of exploitation instead of understanding it technically (for instance, excess from money-to-money transactions), we might inadvertently allow exploitation to happen.

As Muslims, we don't look at the amount of riba; we understand it's prohibited in any form.