Three Steps to Getting Riba Out of Your Life this Ramadan

WHY SHOULD YOU LEAVE YOUR MONEY IN THE BANK?

With banks teetering on the brink of default, the dollar’s collapse imminent courtesy of yet more “quantitative easing,” and laws now in place that entitle defaulting banks to legally confiscate your deposits, banks are riskier than ever.

Make this Ramadan the month you completely remove commercial interest from your life.

Allah warns us in the Quran: “O you who believe, fear Allah, and completely discard any usury still due, if believers you truly be. If you will not, then hear and know of an utter war against you from Allah and His messenger; And if you repent and desist, you may keep your original wealth, neither wronging nor being wronged.” (Quran 2:278-79).

The Prophet Muhammad (Allah bless him and give him peace) said, “Usurious gain is of seventy kinds, the least of which is as bad as a man marrying his mother.”

Besides these religious prohibitions, commercial interest simply does not make sense: interest grows faster than the planet, the economy, and your ability to repay it. It is time to wake up to the reality of interest-based banking and leave it entirely:

STEP 1: MAKE A PLAN

Make a plan to eliminate all interest-based transactions — mortgages, car loans, student loans, savings accounts, and personal loans. Spend less, pay in cash, rent if you have to, take interest-free loans from friends and family, and do whatever it takes to save yourself from a war with Allah in this life and the next. A number of Islamic financial institutions now offer refinancing options that convert one’s conventional mortgage into its Shariah-compliant equivalent.

STEP 2: EXECUTE THE SHORT-TERM

Close all interest-bearing accounts and open an account in an Islamic financial institution. If there are none in your country, consider opening a non-resident account at one of the many overseas institutions. Or as a last resort, only hold an interest-free account and give your bank standing instructions to never pay or charge you interest.

STEP 3: IMPLEMENT THE LONG-TERM

Close all interest-based investments and invest any surplus funds into gold, silver, or property.

(Approved by Ethica’s Shariah Board)

Editor’s Note: This article was adapted from Ethica Institute of Islamic Finance website.