Usury (Riba)

Usury, or Riba, refers to the practice of charging excessive or interest-based payments on loans, which is prohibited in many Islamic teachings. It involves earning money from money itself rather than through productive activity or legitimate trade. Riba is seen as unfair, as it can lead to exploitation and inequality, since debtors are burdened with persistent payments regardless of their circumstances. Instead, Islamic finance promotes risk-sharing and ethical methods of earning profit, emphasizing justice and fairness in financial transactions.