Is bank interest haram?

The short answer

Yes. Interest charged or paid on a loan is riba, which the Quran forbids in the strongest terms, and the Prophet ﷺ cursed everyone who takes part in it. The prohibition covers any agreed increase on a loan, not only "excessive" rates.

Evidence 1 2 3 4 5 6 7

Explanation

Riba literally means increase. In a loan, it is any extra amount the borrower must pay back on top of what was borrowed, simply because time has passed. Conventional bank interest, whether on a loan, a credit card or a savings account, is exactly that kind of agreed increase.

The Quran answers the most common objection directly. People said, "trade is just like interest", and Allah replied that He "has permitted trade and has forbidden interest" 1. Trade involves real goods, effort and shared risk. A loan with interest guarantees the lender a profit while the borrower carries all the risk.

The warning is unusually severe. Believers are told to give up whatever interest is still owed to them, and that refusing to do so is a declaration of war from Allah and His Messenger 2. They may take back only their original capital: "you do no wrong, nor are you wronged."

The Prophet ﷺ cursed not only the one who takes interest but also the one who pays it, the one who writes the contract and the two witnesses, and said "they are all equal" 3. He listed consuming riba among the seven destructive sins 4.

Some argue the Quran only banned interest "doubled and multiplied" 5. That verse describes how riba was practised in Arabia; it is not a permission for lower rates. The later verses cancel all remaining interest and allow only the principal 2.

The encouraging side: Allah "destroys interest and gives increase for charities" 6. Halal alternatives exist, such as profit-sharing accounts, murabaha (cost-plus sale) and ijarah (leasing), offered by Islamic banks.

The evidence

  1. 1
    Quran Al-Baqara · 2:275

    Allah permitted trade and forbade interest, answering the claim that they are the same.

    ٱلَّذِينَ يَأۡكُلُونَ ٱلرِّبَوٰاْ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِي يَتَخَبَّطُهُ ٱلشَّيۡطَٰنُ مِنَ ٱلۡمَسِّۚ ذَٰلِكَ بِأَنَّهُمۡ قَالُوٓاْ إِنَّمَا ٱلۡبَيۡعُ مِثۡلُ ٱلرِّبَوٰاْۗ وَأَحَلَّ ٱللَّهُ ٱلۡبَيۡعَ وَحَرَّمَ ٱلرِّبَوٰاْۚ فَمَن جَآءَهُۥ مَوۡعِظَةࣱ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمۡرُهُۥٓ إِلَى ٱللَّهِۖ وَمَنۡ عَادَ فَأُوْلَٰٓئِكَ أَصۡحَٰبُ ٱلنَّارِۖ هُمۡ فِيهَا خَٰلِدُونَ ۝٢٧٥

    Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein

  2. 2
    Quran Al-Baqara · 2:278–279

    Give up remaining interest; refusing is war from Allah and His Messenger; keep only your principal.

    يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُواْ ٱتَّقُواْ ٱللَّهَ وَذَرُواْ مَا بَقِيَ مِنَ ٱلرِّبَوٰٓاْ إِن كُنتُم مُّؤۡمِنِينَ ۝٢٧٨ فَإِن لَّمۡ تَفۡعَلُواْ فَأۡذَنُواْ بِحَرۡبࣲ مِّنَ ٱللَّهِ وَرَسُولِهِۦۖ وَإِن تُبۡتُمۡ فَلَكُمۡ رُءُوسُ أَمۡوَٰلِكُمۡ لَا تَظۡلِمُونَ وَلَا تُظۡلَمُونَ ۝٢٧٩

    278 O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers 279 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

  3. 3
    Hadith Sahih Muslim 1598
    Sahih Muslim

    The Prophet ﷺ cursed the taker, the payer, the scribe and the witnesses of interest.

    Jabir said that Allah's Messenger (ﷺ) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said:They are all equal

    العربية

    حَدَّثَنَا مُحَمَّدُ بْنُ الصَّبَّاحِ، وَزُهَيْرُ بْنُ حَرْبٍ، وَعُثْمَانُ بْنُ أَبِي شَيْبَةَ، قَالُوا حَدَّثَنَا هُشَيْمٌ، أَخْبَرَنَا أَبُو الزُّبَيْرِ، عَنْ جَابِرٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ ‏.‏

  4. 4
    Hadith Sahih al-Bukhari 2766
    Sahih Bukhari

    Consuming riba is one of the seven destructive sins.

    Narrated Abu Huraira:The Prophet (ﷺ) said, "Avoid the seven great destructive sins." The people enquired, "O Allah's Messenger (ﷺ)! What are they?" He said, "To join others in worship along with Allah, to practice sorcery, to kill the life which Allah has forbidden except for a just cause, (according to Islamic law), to eat up Riba (usury), to eat up an orphan's wealth, to give back to the enemy and fleeing from the battlefield at the time of fighting, and to accuse, chaste women, who never even think of anything touching chastity and are good believers

    العربية

    حَدَّثَنَا عَبْدُ الْعَزِيزِ بْنُ عَبْدِ اللَّهِ، قَالَ حَدَّثَنِي سُلَيْمَانُ بْنُ بِلاَلٍ، عَنْ ثَوْرِ بْنِ زَيْدٍ الْمَدَنِيِّ، عَنْ أَبِي الْغَيْثِ، عَنْ أَبِي هُرَيْرَةَ ـ رضى الله عنه ـ عَنِ النَّبِيِّ صلى الله عليه وسلم قَالَ ‏"‏ اجْتَنِبُوا السَّبْعَ الْمُوبِقَاتِ ‏"‏‏.‏ قَالُوا يَا رَسُولَ اللَّهِ، وَمَا هُنَّ قَالَ ‏"‏ الشِّرْكُ بِاللَّهِ، وَالسِّحْرُ، وَقَتْلُ النَّفْسِ الَّتِي حَرَّمَ اللَّهُ إِلاَّ بِالْحَقِّ، وَأَكْلُ الرِّبَا، وَأَكْلُ مَالِ الْيَتِيمِ، وَالتَّوَلِّي يَوْمَ الزَّحْفِ، وَقَذْفُ الْمُحْصَنَاتِ الْمُؤْمِنَاتِ الْغَافِلاَتِ ‏"‏‏.‏

  5. 5
    Quran Aal-i-Imraan · 3:130

    Do not consume riba "doubled and multiplied".

    يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُواْ لَا تَأۡكُلُواْ ٱلرِّبَوٰٓاْ أَضۡعَٰفࣰ ا مُّضَٰعَفَةࣰۖ وَٱتَّقُواْ ٱللَّهَ لَعَلَّكُمۡ تُفۡلِحُونَ ۝١٣٠

    O you who have believed, do not consume usury, doubled and multiplied, but fear Allah that you may be successful

  6. 6
    Quran Al-Baqara · 2:276

    Allah destroys interest and makes charity grow.

    يَمۡحَقُ ٱللَّهُ ٱلرِّبَوٰاْ وَيُرۡبِي ٱلصَّدَقَٰتِۗ وَٱللَّهُ لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ ۝٢٧٦

    Allah destroys interest and gives increase for charities. And Allah does not like every sinning disbeliever

  7. 7
    Tafsir Al-Mukhtasar fi Tafsir al-Quran · 2:278

    O you who have faith in Allah and follow His Messenger, fear Allah by fulfilling His instructions and avoiding His prohibitions, and do not demand any usury owed to you that remains with people, if you truly have faith in Allah and in His prohibitions.

This answer was compiled with the help of AI, using only the verified texts shown here. Every reference links to its source. If you find a mistake, please report it. Updated 2026-09-24

Report an issue

Tell us what is wrong. Every report is read.

What is the problem?