Islam - Its Meaning for Modern Man — Page 267
267 or, at least, a little, rather than that one or a few should have a large share and the rest nothing. Another major provision is the prohibition against the making of loans on interest. The word used in this connection in the Quran is riba , the connotation of which is not identical with that of the word “interest” as commonly understood, but for our present purpose “interest” may be used as a rough equivalent. Riba is prohibited because it tends to draw wealth into the hands of a small circle and to restrict the exercise of beneficence toward one’s fellow beings. In the case of loans which bear interest, the lender in effect takes advantage of, and makes a profit from, the need or distress of another. Islam urges the making of loans, but says they should be beneficent loans, meaning, without interest. If the debtor finds himself in straitened circumstances when the time for repayment of a loan arrives, he should be granted respite till he finds himself in easier circumstance, but “if you remit it altogether as charity, that shall be the better for you, if only you knew” (2:281). It is a mistake to imagine that transactions involving interest bring about an increase in the national wealth. The Quran says that in the sight of Allah it is not a beneficent increase. “But whatever you give in Zakat, seeking the favour of Allah ⎯ it is these who will increase their wealth manifold” (30:40).