Getting Rid of Riba Money (Interest and usury) in an Islamic Way
In Islam, financial integrity is a key part of faith. Our religion teaches that wealth should be earned lawfully and used responsibly. Among the most serious threats to financial purity is Riba (interest and usury), which has been strongly condemned in the Qur’an and Sunnah.
What Is Riba (Interest and Usury)?
Riba is any guaranteed interest on loaned money, whether small or large, and whether the borrower is rich or poor. It is not just discouraged it is considered a major sin in Islam.
Why do people fall into Riba?
People often engage in interest-based transactions for three main reasons:
- Knowingly, due to worldly desires and the influence of Shayṭān.
- Unknowingly, due to a lack of knowledge of Islamic rulings.
- Out of confusion, thinking modern banking is permissible.
This highlights the importance of learning Islamic financial laws and consulting qualified scholars before engaging in financial contracts.
Types of Riba in Islam
Islamic law identifies two primary types of Riba,
1. Riba al-Faḍl (Interest in Trade)
Occurs when certain goods (like gold, silver, dates, etc.) are exchanged unequally or with delay.
“Gold for gold, silver for silver... equal for equal, hand to hand. If any increase occurs, then it is usury.” [Reported by Muslim]
Examples:
- Exchanging 100g of used gold for 80g of new gold (Riba)
- Trading 80g of gold + $1,000 for 80g of another (Riba)
Ruling: Any excess must be returned or disposed of in charity if the original owner is unreachable.
Note: If the items differ (e.g., gold for cash), unequal trade is allowed if it is conducted hand-to-hand (on the spot).
2. Riba al-Nasī'ah (Interest in Loans)
Occurs when repayment is delayed and an additional amount is charged.
Examples:
- Lending $1,000 and requiring repayment of $1,500.
- Increasing debt due to delayed repayment.
Modern banking example:
- Saving money in an interest-bearing account is also Riba, as the bank pays back more than what was deposited.
- In Australia, this is common in most banks. Muslims are advised to avoid benefiting from such interest. Instead, donate interest money towards a charity that knows how to dispose of this type of money.
What if I've earned interest?
If you have received interest money, intentionally or unintentionally, here’s what to do:
- Repent sincerely to Allah.
- Stop engaging in interest-based transactions.
- Keep only the original amount, not the interest.
- Increase your good deeds, especially Sadaqah (voluntary charity).
How to purify wealth from interest (Tainted Wealth) in Islam
Islam teaches us to dispose of interest earnings with the intention of purification, not charity.
It is not a replacement for Zakat or Sadaqah.
It is a form of financial cleansing, an ethical obligation, not a spiritual offering.
Suitable Ways to Dispose of Tainted Wealth,
- Support public services (roads, wells, etc.)
- Assist needy person’s non direct and personal consumption needs
- Contribute to hospital aid or communal benefit
- Support programs that educate or help the underprivileged
Note: This money cannot be used for personal gain or the direct benefit of family or friends.
Example: Organizations like NZF Australia allocate such tainted funds toward public benefit with complete transparency.
Final Thoughts: Avoid Riba, Embrace Barakah
Riba poisons wealth, destroys barakah, and invites the wrath of Allah. It promotes inequality and harms individuals and societies alike.
We must take personal responsibility:
Cleanse our wealth.
Avoid interest-based income.
Seek out halal avenues for earning and saving.
Let us live with financial integrity, aiming for purity in our income and blessings in our life.
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Summary
Riba (interest/usury) is strictly prohibited in Islam and is considered one of the gravest sins.
It comes in two forms: Riba al-Faḍl (trade-related) and Riba al-Nasī’ah (loan-related).
Earnings from interest are tainted wealth and must not be used for personal benefit.
To purify your income:
Repent sincerely.
Remove all interest-based earnings.
Dispose of the money in ethical, non-personal avenues (e.g., public welfare, support for the needy).
Disposing of interest money is not charity; it is an act of financial cleansing and does not replace Zakat or Sadaqah.
A believer should always seek halal income, trust in Allah’s provision, and preserve their wealth’s barakah.
Let us uphold honesty in our financial dealings and help build a just and blessed Muslim community.