The Islamic Economics Student Association (HMPS-ES), FEBI, UIN Sunan Kalijaga Yogyakarta held the 2nd session of Quranic Study Economics as part of the Sharia Economic Fair (SEF) 2020. The event, held on October 12, 2020, addressed the theme of "Interest and Usury in the Book of Fiqh Sunnah Sayyid Sabiq."

The event was led by Mrs. Lailatis Syarifah, Lc, M.A., the Secretary of the Islamic Economics Study Program. The 2nd session of Quranic Study of Economics proceeded smoothly and was well-attended by numerous students. During the session, Mrs. Lailatis Syarifah, Lc, M.A., elucidated that linguistically, the term "riba" denotes addition. In this context, "riba" signifies an increase to the principal amount of wealth, regardless of its magnitude. Allah swt. says,
"… But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged." (Al-Baqarah [2]: 270)

In the book Fiqh Sunnah by Sayyid Sabiq, it is elucidated that all divine scriptures denounce usury as forbidden, a prohibition upheld by all major religions, including Judaism, Christianity, and Islam. Nevertheless, it is noted that some Jewish beliefs permit usury from non-Jews. The Quran also iterates the prohibition of usury in several chronological order, culminating in a definitive prohibition in the following verse:

"O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged." (Al-Baqarah [2]: 278-279)

This verse unequivocally refutes the claim that usury is permissible unless it is compounded, as it states that Allah permits only the return of the principal without any increase. It is the final revelation concerning usury, and it invokes Allah's curse upon all parties engaged in usurious transactions: the lender, the borrower, the scribe who documents it, and the witnesses to the agreement.

Usury is categorized into two types: usury nasiah, which involves an additional amount charged by the lender to the borrower as compensation for delaying repayment, and usury fadhl, which entails the exchange of money for money or food with an increase under pressure. Both types are prohibited according to the Sunnah of the Prophet and consensus, as they are seen as a pathway to usury nasiah. The rationale behind the prohibition of usury is to avert the numerous perils it presents, including fostering animosity, undermining the spirit of mutual aid among people, creating a privileged class of non-working wealthy individuals, and enabling usury to serve as a tool for imperialism.

Author: Luluk Astuti