Interest and Usury in the United States

ٱلَّذِينَ يَأۡڪُلُونَ ٱلرِّبَوٰاْ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيۡطَـٰنُ مِنَ ٱلۡمَسِّ‌ۚ ذَٲلِكَ بِأَنَّهُمۡ قَالُوٓاْ
إِنَّمَا ٱلۡبَيۡعُ مِثۡلُ ٱلرِّبَوٰاْ‌ۗ وَأَحَلَّ ٱللَّهُ ٱلۡبَيۡعَ وَحَرَّمَ ٱلرِّبَوٰاْ‌ۚ

Those who devour usury will not stand except as stands one whom the Satan by his touch hath driven to madness. That is because they say: Trade is just like usury; whereas Allah permitted trading and forbade usury

Al-Baqara; 275


يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُواْ ٱتَّقُواْ ٱللَّهَ وَذَرُواْ مَا بَقِىَ مِنَ ٱلرِّبَوٰٓاْ إِن كُنتُم مُّؤۡمِنِينَ ، فَإِن لَّمۡ تَفۡعَلُواْ
فَأۡذَنُواْ بِحَرۡبٍ۬ مِّنَ ٱللَّهِ وَرَسُولِهِۦ

O you who believe, be conscious to Allah and leave what remains of the usurious money (you generated) if you were ever faithful. So if you don’t refrain, then be announced of a war from Allah and His messenger

Al-Baqara; 278-279


This lecture is a consideration for:

  • College students who are looking for student loans.
  • People who are interested in buying their own home.
  • Car dealers who want to finance for their clients Islamically
  • Business workers dealing with credit /debit cards, cashing checks, warranty purchases, currency exchanges, and etc.
  • Those who have 401 (K) plan, and want the Halal way to invest their money.
  • One who has extra money and wants to save it in a savings or checking account.
  • Those who are involved with, (6% APR) interest thinking that it is Haram.
  • Imams receiving many questions about Riba.
  • And many more …


The important teachings in this lecture:

  • Introduction to Islamic Finance.
  • Difference between Halal and Haram for certain financing.
  • Process of buying a house via mortgage.
  • Basic jurisprudential rules of usury in Islam.
  • Using credit cards, and to what extent is permissible.
  • The permissibility of having a saving and checking account.
  • Dealing with one’s 401 (K) plan.
  • How to avoid Riba.


Seminar Materials:

  • In this seminar you will receive a handout summary of the lessons.


Time Frame:

This lecture will last up to 5 hours:

  • For 2 sessions, each of them last 2 hours and there will be a one hour break.
  • There will be 10 minutes for questions in each hour.

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