Are Muslims Allowed to Pay Interest?

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Interest or “Riba” is forbidden in Islam by the word of Allah and Muslims are not allowed to deal in any form of interest. Allah say's in the Quran:

“O you who have believed, do not consume interest, doubled and multiplied, but fear God that you may be successful.” (Quran 3:130)

And also:

“...But Allah has permitted trade and has forbidden interest.” (Quran 2:275)


Therefore, Interest of all sorts is banned in Islam and Muslims are not to be involved in paying or receiving it. A question raised here would be why? The reason for this is Islam views money as merely a medium of exchange and not a commodity from which to earn further money in the form of interest. Interest is also seen as an exploitative practice that forces those in need to seek financial help having to pay an exorbitant premium for it. Furthermore, it leads a concentration of wealth in a few hands as interest is a risk-free way to earn wealth and thus this leads to income disparity in the economy.

Read On:

An extended section can be found in the Quran on interest here:


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