Usury Prohibited (3:130 – 3:132)

Usury Prohibited*

3:130 O you who believe, you shall not take usury, compounded over and over. Observe GOD, that you may succeed.

*3:130 Interest on bank deposits and interest charged on loans are lawful if they are not excessive (5-15%). Banks invest and their profits are passed on to the depositors. Since all parties are happy and no one is victimized, it is perfectly lawful to take interest from the bank (see 2:275).

3:131 Beware of the hellfire that awaits the disbelievers.

You shall obey GOD and the messenger, that you may attain mercy.