Interest From A Jurisprudical View

We should deeply thank the Sahaabah radiyallahu anhum in their efforts to spread the religion as they learnt it from the Prophet sallallahu alaihe wasallm. Then when the religion started to spread vastly Allah brought about four imams who described the religion in general terms in order to make the common public understand. They spent their lives trying to put the whole religion in a collective form through the Qur’an and the Ahaadith and the concise decisions of the Sahaabah radiyallahu anum. In the case of interest, all four imams established a general rule mainly concentrating on this statement made by the Prophet sallallahu alaihe wasallm.

Hazrat Al-Khudri radiyallahu anhu reported that the Prophet sallallahu alaihe wasallm said: Gold in exchange for gold, silver in exchange for silver, wheat in exchange for wheat, barley in exchange for barley, dates in exchange for dates, salt in exchange for salt is in the same category and (should be exchanged) hand to hand, so who ever adds or demands increase he has practised usury. The giver and taker are the same.

Out of the four imams, Imam Abu Hanifah has ruled that if the measurement system (volumetric or in compounds) is the same and the two items are in the same category, then they should be sold in the same amount and direct not in credit otherwise interest will be found.

Imam Shaf’ee says that if the items are valuable and could be considered food then there is the chance of interest. Imam Malik says that if the items are valuable and are edible then interest is a subject.