Interest Dealings in Non-Muslim Lands

By Mufti Ebrahim Desai
Posted: 29 Zul-Qa'dah 1423, 1 February 2003

Q.) Is Interest prohibited between a Muslim and non-Muslim in Darul-Harb (non-Islamic state) like South Africa, UK, Australia, etc.?

A.) According to the overwhelming majority of the Muslim Jurists, there is no difference in the prohibition of interest between a Muslim and non-Muslim anywhere, Darul Islam (Islamic state) or Darul Harb (a state of ongoing conflict with Muslims). In the early days of Rasulullah Sall-Allahu alayhi wa sallam many Muslims used to enter into Riba transactions with non-Muslims, but when Riba was prohibited, they stopped this practice totally. The verses of the Noble Qur'an which prohibited Riba did not differentiate between a Muslim and non-Muslim. Similarly, there is no example in the days of the Sahaba (RA) where anyone of the Sahaba (RA) entered into Riba transaction with a non-Muslim after the prohibition was enforced. Therefore, one cannot be advised to take an interest-bearing loan, even in a non-Muslim country.

And Allah Ta'ala Knows Best

Further Reading: The Issue of Interest