Interest Fund

What is Riba?

Riba is a major source of injustice and exploitation in the conventional economic system. Riba is an Arabic word that means “to increase” or “to exceed” and is commonly used in reference to unequal exchanges or charges and fees for borrowing. Interest on money is deemed riba or an unjust, exploitative gain, and such practice is forbidden under Islamic law.

As Muslims living in a non-Islamic society, we need to be careful about our financial dealings and avoid any involvement in Riba.

Where is Riba found?

• Bank accounts, savings plans, loans, mortgages, or credit cards.
• A bank will pay you interest when you deposit your money in a high-yield savings account. The bank does so in order to hold and use your money to invest in other transactions. Conversely, if you borrow money to pay for a large expense, the lender will charge you interest on top of the amount you borrowed.

I have some Riba income; what should I do?

If you have any Riba income, you should dispose of it in a way that complies with the Shariah. You can do this by donating your Riba to ISRA-UK. This will help you purify your wealth from haraam sources and enable us to use your Riba to aid our work towards humanitarian causes.

Although donating your Riba will not count as charity for you,  Allah (swt) may reward you for cleansing your income of forbidden sources.

Why is Riba forbidden?

Riba is forbidden because it is a form of oppression and exploitation of people experiencing poverty and financial hardship which further increases the gap between the rich and poor.  Those who receive Riba are encouraged to donate it to a charitable cause. 

Can I donate my Riba to ISRA-UK?

Yes you can donate your Riba to ISRA-UK please ensure you specify the type of payment so that we can ensure the money is allocated correctly. 

How will ISRA-UK use your Riba donation?

Your Riba donation will be used to cover the essential operational costs of our organisation, such as card processing fees and ongoing admin costs.