Why is Riba Haram?

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

Riba (interest and/or usury) is forbidden in Islamic Sharee’ah as it was forbidden in other monotheist religions. Allah Says (what means) about the Jews: {And [for] their taking of usury while they had been forbidden from it, and their consuming of the people’s wealth unjustly.} [Quran 4: 161[

The reason behind forbidding it is clear. It is consuming the belongings of people without legal right. Riba also gives the rich people monopoly of all the money and does not help the poor.

Also, giving loans with interest results in hatred and enmity between people and it causes severing of relations between them. Islam calls for unity while Riba causes disunity in the single Muslim nation. Islam also urges rich people to be compassionate towards the poor while Riba results in the opposite.

Allah Knows best.