INTEREST OR USURY(RIBA)
Riba means interest or usury. Interest, according to the Oxford Dictionary means: “Money paid for the use of money lent”.
In the Islamic context, Riba is further classified into two categories, namely:
1. Riba Al Fazl
2. Riba An Nasee’ah .
Let us now understand what is Riba Al Fazl?
Riba Al Fazl means: the excess which is taken in exchange of specific homogenous commodities such as selling gold with another gold, whereby one has more weight than the other or Taking a superior thing of the same kind of goods by giving more of the same kind of goods of inferior quality, e.g. Dates of superior quality for dates of inferior quality in great amounts.
Riban An Nasee’ah is related to extension of repayment period for additional payment of money. 
Linguistically the word Riba means to increase, to grow, to exceed, to be more than. In context of interest/usury, the word “Riba” is used as increase in wealth.
In Shari‘ah, riba technically refers to the "premium" that must be paid by the borrower to the lender along with the principle amount as a condition for the loan.
The most common application of Riba is on monetary transaction relating to “loans” and “credits”. A simple example of loan is when Lender gives $1000 to a Debtor with an agreement that Debtor will return $1200 on specified date. Hence, the Lender will receive extra $200 (either as his service fee, rent, income, or reward for lending money for stated time period). This extra $200 is absolute form of Riba in Islamic Shariah.
Similarly, other financial transactions involving Riba, such as advancing money on interest, keeping deposits in a bank for the sake of earning interest, or getting concessions in rates of goods or commodities against advance payments of price, mortgaging and utilizing an income-yielding property against a certain sum, to be returned in full when the property is redeemed and investing money in a trade against a predetermined and fixed rate of profit-are all forbidden transactions because they involve Riba in some form or the other. And the person doing any of these transactions invariably pay X amount of money, but in return gets X+ more back (without profit and loss sharing).
Riba is forbidden in Islam. Consuming or providing assistance for it is a great sin. According to Shah Waliullah Dehlvi رحمت الله: "Riba is a loan with the condition that the borrower will return to the lender more than and better than the quantity borrowed."
Hafiz Ibn Hajr رحمت اللهwrites in his commentary of Sahih Al Bukhari (Fathul Bari):
"Imam Malik رحمت اللهreports on the authority of Zaid Ibn Aslam رضي الله عنهthat in the period of ignorance (pre-Islamic times) interest was changed according to the following scheme. One person had a right in the property of another person. It may have been a general right because of the amount lent or the price of something purchased or in any other form. A time was set when the claim would be settled. When the appointed time arrived the creditor would ask the debtor if he wanted to settle the claim or pay interest with an extension to the time. If the claim was settled then there was no increase in the payment. Otherwise the debtor would increase the amount payable and the creditor would extend the period further.”
During pre-Islamic era, it was customary to borrow gold, silver, metals, live stocks and item of food (wheat, barley and agricultural products etc.) to fulfill the requirement of a needy person, however, in accordance with the deal, if the borrower fails to return the items he borrowed at the preset time or in case of default; the lender often used to increasing the amount out of proportion, charging double or multiple time of the original amount according his own discretion. Borrower had no say in it and there was nothing to control this trend which is basically an exploitation of the situation to weaken or destroy the borrower. As Muslims were also part of the society, they had to deal with the same prevailing trend.
"O you who believe! Fear Allah سبحانه و تعالىand give up what remains of your demand for usury if you are indeed believers. If you do not, take notice of war from Allah سبحانه و تعالى and His Messenger Prophet Muhammad ﷺ. But if you repent you shall have your capital sum. Deal not unjustly and you shall not be dealt with unjustly." Qur’an.Surah Baqrah 2:278-279.
O you who have believed, do not consume usury, doubled and multiplied, but fear Allah سبحانه و تعالىthat you may be successful.And fear the Fire, which is prepared for the disbelievers. Qur’an.Surah Imaran 3:130-131.
And [for] their taking of usury while they had been forbidden from it, and their consuming of the people's wealth unjustly. And we have prepared for the disbelievers among them a painful punishment. Qur’an.Surah Nisa 4:161.
And whatever you give for interest to increase within the wealth of people will not increase with Allah سبحانه و تعالى. But what you give in zakah, desiring the countenance of Allah سبحانه و تعالى- those are the multipliers.Qur’an.Surah Ar Rum 30:39.
Allah سبحانه و تعالىwill destroy Riba and will give increase for Sadaqat. And Allah سبحانه و تعالىlikes not the disbelievers, sinners.Qur’an.Surah Baqrah 2:276.
O you who believe! Have Taqwa of Allah سبحانه و تعالىand give up what remains from Riba, if you are (really) believers. Qur’an.Surah Baqrah 2:278.
And if you do not do it, then take a notice of war from Allah سبحانه و تعالىand His Messenger ﷺbut if you repent,you shall have your capital sums. Deal not unjustly, and you shall not be dealt with unjustly. Qur’an.Surah Baqrah 2:279.
Quran explicitly prohibits Riba, and since Qur’an is an undisputed source of guidance, all Muslims unanimously agrees on prohibition of Riba. There is no difference of opinion among any school of thought on prohibition of Riba in Islamic Shariah
Narrated Ibn `Umar رضي الله عنه: `Umar رضي الله عنهdelivered a sermon on the pulpit of Allah’s Apostle ﷺ, saying, “Alcoholic drinks were prohibited by Divine Order, and these drinks used to be prepared from five things, i.e., grapes, dates, wheat, barley and honey. Alcoholic drink is that, that disturbs the mind.” `Umar رضي الله عنهadded, “I wish Allah’s Apostle ﷺhad not left us before he had given us definite verdicts concerning three matters, i.e., how much a grandfather may inherit (of his grandson), the inheritance of Al-Kalala (the deceased person among whose heirs there is no father or son), and various types of Riba (usury) .” Sahih Al Bukhari Vol. 7:493
Those who eat Riba will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaytan leading him to insanity. That is because they say: “Trading is only like Riba,” whereas Allah سبحانه و تعالىhas permitted trading and forbidden Riba. So whosoever receives an admonition from his Lord and stops eating Riba, shall not be punished for the past; his case is for Allah سبحانه و تعالى(to judge); but whoever returns (to Riba), such are the dwellers of the Fire ـthey will Abide therein. Qur’an.Surah Baqrah 2:275.
This is clear evidence that Allah سبحانه و تعالىmade it clear that “trade” and “riba” are not same, and that He forbade “riba” and allowed “trade”.
Riba is one of the major sins in Islam. Narrated Abu Huraira رضي الله عنه: The Prophetﷺ said, "Avoid the seven great destructive sins." The people enquire, "O Allah's Apostle ﷺ! What are they? "He said, "To join others in worship along with Allah سبحانه و تعالى, to practice sorcery, to kill the life which Allah سبحانه و تعالىhas forbidden except for a just cause, (according to Islamic law), to eat up Riba (usury), to eat up an orphan's wealth, to give back to the enemy and fleeing from the battlefield at the time of fighting, and to accuse, chaste women, who never even think of anything touching chastity and are good believers. Sahih Al Bukhari Vol 4:28 and Vol 8:840, Sahih Muslim 161 and Sunan Abu Dawod 2868.
The Messenger of Allah ﷺcursed the one who consumes riba (interest or usury), the one who gives it, the one who writes it down and the one who witnesses it. He said: 'All of them are equal in sin.'" Sahih Al Muslim 1598.
Narrated Ibn Shihab رضي الله عنه: that Malik bin Aus رضي الله عنهsaid, “I was in need of change for one-hundred Dinars. Talha bin ‘Ubaidullah رضي الله عنهcalled me and we discussed the matter, and he agreed to change (my Dinars). He took the gold pieces in his hands and fidgeted with them, and then said, “Wait till my storekeeper comes from the forest.” `Umar رضي الله عنهwas listening to that and said, “By Allah سبحانه و تعالى! You should not separate from Talha رضي الله عنهtill you get the money from him, for Allah’s Apostle ﷺsaid, ‘The selling of gold for gold is Riba (usury) except if the exchange is from hand to hand and equal in amount, and similarly, the selling of wheat for wheat is Riba (usury) unless it is from hand to hand and equal in amount, and the selling of barley for barley is usury unless it is from hand to hand and equal in amount, and dates for dates, is usury unless it is from hand to hand and equal in amount” Sahih Al Bukahri Vol 3, H:382.
Abu Huraira رضي الله عنهreported Allah’s Messenger ﷺas saying: Gold is to be paid for by gold with equal weight, like for like, and silver is to be paid for by silver with equal weight, like for like. He who made an addition to it or demanded an addition dealt in usury. Sahih Muslim 3857.
Narrated Abu Sa`id al-Khudri رضي الله عنه: Once Bilal رضي الله عنهbrought Barni (i.e. a kind of dates) to the Prophet Muhammad ﷺand the Prophet ﷺasked him, “From where have you brought these?” Bilal رضي الله عنهreplied, “I had some inferior type of dates and exchanged two Sas of it for one Sa of Barni dates in order to give it to the Prophet ﷺ; to eat.” Thereupon the Prophet ﷺsaid, “Beware! Beware! This is definitely Riba (usury)! This is definitely Riba (Usury)! Don’t do so, but if you want to buy (a superior kind of dates) sell the inferior dates for money and then buy the superior kind of dates with that money.” Sahih Al Bukhari Vol 3 H:506.
Abu Sa’id al-Khudri رضي الله عنهreported Allah’s Messenger ﷺas saying: Gold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, salt by salt, like by like, payment being made hand to hand. He who made an addition to it, or asked for an addition, in fact dealt in usury. The receiver and the giver are equally guilty. Sahih Al Muslim 3854.
Narrated Abu Sa`id رضي الله عنه: We used to be given mixed dates (from the booty) and used to sell (barter) two Sas of those dates) for one Sa (of good dates). The Prophet ﷺsaid (to us), “No (bartering of) two Sas for one Sa nor two Dirhams for one Dirham is permissible”, (as that is a kind of usury). Sahih Al Bukhari Vol 3 H:294.
Narrated `Aun bin Abu Juhaifaرضي الله عنه: My father bought a slave who practiced the profession of cupping. (My father broke the slave’s instruments of cupping). I asked my father why he had done so. He replied, “The Prophet Muhammad ﷺforbade the acceptance of the price of a dog or blood, and also forbade the profession of tattooing, getting tattooed and receiving or giving Riba, (usury), and cursed the picture-makers.” Sahih Al Bukhari Vol 3 H:299.
Narrated `Abdullah bin Abu `Aufa رضي الله عنه: A man displayed some goods in the market and took a false oath that he had been offered so much for them though he was not offered that amount Then the following Divine Ayath was revealed:– “Verily! Those who purchase a little gain at the cost of Allah’s سبحانه و تعالىcovenant and their oaths . . . Will get painful punishment.” (Qur’an.surah 3.77) Ibn Abu `Aufa رضي الله عنهadded, “Such person as described above is a treacherous Riba eater (i.e. eater of usury). Sahih Al Bukhari Vol 3 H:841.
Narrated Abu Sa`id Al-Khudri رضي الله عنه and Abu Hurairaرضي الله عنه : Allah’s Apostleﷺappointed somebody as a governor of Khaibar. That governor brought to him an excellent kind of dates (from Khaibar). The Prophet Muhammad ﷺasked, “Are all the dates of Khaibar like this?” He replied, “By Allah سبحانه و تعالى, no, O Allah’s Apostle ﷺ! But we barter one Sa of this (type of dates) for two Sas of dates of ours and two Sas of it for three of ours.” Allah’s Apostleﷺsaid, “Do not do so (as that is a kind of usury) but sell the mixed dates (of inferior quality) for money, and then buy good dates with that money.” Sahih Al Bukhari Vol 3 H:405.
Narrated Abu Burda رضي الله عنه: When I came to Medina. I met `Abdullah bin Salam رضي الله عنهHe said, “Will you come to me so that I may serve you with Sawiq (i.e. powdered barley) and dates, and let you enter a (blessed) house that in which the Prophet Muhammad ﷺ entered?” Then he added, “You are In a country where the practice of Riba (i.e. usury) is prevalent; so if somebody owe you something and he sends you a present of a load of chopped straw or a load of barley or a load of provender then do not take it, as it is Riba.” Sahih Al Bukhari Vol 5 H:159.
Yahya رحمت اللهrelated to me from Malik رضي الله عنهthat Yahya ibn Said رضي الله عنهsaid, “The Messenger of Allah ﷺ, may Allah سبحانه و تعالىbless him and grant him peace, ordered the two Sads to sell a vessel made of either gold or silver from the booty. They either sold each three units of weight for four units of weight of coins or each four units of weight for three units of weight or coins. The Messenger of Allah ﷺ, may Allah سبحانه و تعالىbless him and grant him peace, said to them, ‘You have taken usury, so return it.’ Muwatta Malik 28.
Yahya رحمت اللهrelated to me from Malik رحمت اللهfrom Nafi رضي الله عنهfrom Abdullah ibn Umar رضي الله عنه that Umar ibn al-Khattab رضي الله عنهsaid, “Do not sell gold for gold except like for like, and do not increase one part over another part. Do not sell silver for silver except like for like, and do not increase one part over another part. Do not sell silver for gold, one of them at hand and the other to be given later. If someone seeks to delay paying you until he has been to his house, do not leave him. I fear rama for you.” Rama is usury. Muwatta Malik Book:31 H:34.
Abu Minhal رحمت اللهreported: My partner sold silver to be paid in the (Hajj) season or (in the days of) Hajj. He (my partner) came to me and informed me, and I said to him: Such transaction is not desirable. He said: I sold it in the market (on loan) but nobody objected to this. I went to al-Bara’ b. ‘Azib رضي الله عنهand asked him, and he said: Allah’s Apostle ﷺ came to Medina and we made such transaction, whereupon he said: In case the payment is made on the spot, there is no harm in it, and in case (it is ‘sold) on loan, it is usury. You better go to Zaid b. Arqam رضي الله عنه, for he is a greater trader than I; so I went to him and asked him, and he said like it.Sahih Muslim 3859.
Abd Sa’id رضي الله عنهreported: Bilal رضي الله عنهcame with fine quality of dates. Allah’s Messenger ﷺsaid to him: From where (you have brought them)? Bilal رضي الله عنهsaid: We had inferior quality of dates and I exchanged two sa’s (of inferior quality) with one sa (of fine quality) as food for Allah’s Apostle ﷺ, whereupon Allah’s Messenger ﷺsaid: Woe! it is in fact usury; therefore, don’t do that. But when you intend to buy dates (of superior quality), sell (the inferior quality) in a separate bargain and then buy (the superior quality). And in the hadith transmitted by Ibn Sahl رحمت اللهthere is no mention of” whereupon” Sahih Muslim 3871.
Malik رحمت اللهrelated to me that Zayd ibn Aslam رضي الله عنهsaid, “Usury in the Jahiliyya was that a man would give a loan to a man for a set term. When the term was due, he would say, ‘Will you pay it off or increase me?’ If the man paid, he took it. If not, he increased him in his debt and lengthened the term for him .”
Malik رحمت اللهsaid, “The disapproved of way of doing things about which there is no dispute among us, is that a man should give a loan to a man for a term, and then the demander reduce it and the one from whom it is demanded pay it in advance. To us that is like someone who delays repaying his debt after it is due to his creditor and his creditor increases his debt.” Malik رحمت اللهsaid, “This is nothing else but usury. No doubt about it.”Malik رحمت اللهspoke about a man who loaned one hundred dinars to a man for two terms. When it was due, the person who owed the debt said to him, “Sell me some goods, whose price is one hundred dinars in cash for one hundred and fifty on credit.” Malik رحمت اللهsaid, “This transaction is not good, and the people of knowledge still forbid it.”Malik رحمت اللهsaid, “This is disapproved of because the creditor himself gives the debtor the price of what the man sells him, and he defers repayment of the hundred of the first transaction for the debtor for the term which is mentioned to him in the second transaction, and the debtor increases him with fifty dinars for his deferring him. That is disapproved of and it is not good. It also resembles the hadith of Zayd ibn Aslam رضي الله عنهabout the transactions of the people of the Jahiliyya. When their debts were due, they said to the person with the debt, ‘Either you pay in full or you increase it.’ If they paid, they took it, and if not they increased debtors in their debts, and extended the term for them.” Muwatta malik 84.
And you see many of them hurrying towards sin and transgression, and eating illegal things [as bribes and riba (usury)]. Evil indeed is that which they have been doing. Qur’an.Surah Maidah 5:62.
The Prophet ﷺsaid: “A dirham which a man consumes as riba knowingly is worse before Allah سبحانه و تعالىthan thirty-six acts of zina.”Musand Ahmed,Tabarani, Sahih Al-Jaami 3375.
The Prophet Muhammad ﷺsaid: “There are seventy-two types of riba, the least of which is like a man committing incest with his mother.” Tabrani in Al-Awsat,Sahih Al-Jami 3537.
Narrated `Abdullah bin Abu `Aufa رضي الله عنه: A man displayed some goods in the market and took a false oath that he had been offered so much for them though he was not offered that amount Then the following Divine Ayath was revealed:– “Verily! Those who purchase a little gain at the cost of Allah’s سبحانه و تعالىcovenant and their oaths . . . Will get painful punishment.” (3.77) Ibn Abu `Aufa رضي الله عنهadded, “Such person as described above is a treacherous Riba eater (i.e. eater of usury). Sahih Al Bukhari Vol 3 H:841.
Narrated Abdullah ibn Mas’ud رضي الله عنه: The Apostle of Allah ﷺ cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it. Sunan Abu Dawod 3327.
Narrated Abu Juhaifa رضي الله عنه: The Prophet ﷺcursed the lady who practices tattooing and the one who gets herself tattooed, and one who eats (takes) Riba’ (usury) and the one who gives it. And he prohibited taking the price of a dog, and the money earned by prostitution, and cursed the makers of pictures. Sahih Al Bukhari Vol 7 H:259.
Abdullah bin Mas`ud رضي الله عنهreported: The Messenger of Allah ﷺcursed the one who accepts Ar-Riba (the usury) and the one who pays it. Sahih Muslim 1615.
Narrated `Aun bin Abu Juhaifa رضي الله عنه: My father bought a slave who practiced the profession of cupping. (My father broke the slave’s instruments of cupping). I asked my father why he had done so. He replied, “The Prophet ﷺforbade the acceptance of the price of a dog or blood, and also forbade the profession of tattooing, getting tattooed and receiving or giving Riba, (usury), and cursed the picture-makers.” Sahih Al Bukhari Vol 3 H:299.
Narrated Samura bin Jundub رضي الله عنه: …………. So we went on and came to a river – I think he said, red like blood. – In the river there was a man swimming, and on the bank there was a man who had gathered many stones. Whilst the swimmer was swimming, the man who had gathered the stones approached him. The swimmer opened his mouth and the man on the bank threw a stone into it, then the swimmer carried on swimming. Each time he came back, he opened his mouth again, and the man on the bank threw another stone into his mouth. I said to my two companions, ‘Who are these two persons?’They said, ‘Move on, move on!’ …
I said to them, I have seen many wonders this night (The night of journey). What do all these things mean that I have seen?’ They said: ‘We will tell you. The first man you came across, whose head was being smashed with the rock, is the man who studies the Qur’an then he neither recites it nor acts upon it, and he goes to sleep, neglecting the obligatory prayers. The man you came across whose mouth, nose and ears were being torn from front to back, is the man who goes out of his house in the morning and tells a lie that is so serious that it spreads all over the world. The naked men and women whom you saw in a structure that resembled an oven are the adulterers and adulteresses. The man you saw swimming in the river with rocks being thrown into his mouth is the one who consumed riba (usury).”Sahih Al Bukhari Vol 9 H:171.
It is not permissible to work in riba-based banks, with or without a salary, because the one who works in them will either be dealing directly with riba by recording or witnessing it, or he will be helping with it in some way. The riba-based banks are places of great evil in which a major sin is committed and there is no guarantee that the one who sits in such a place will not be subjected to the curse of Allah سبحانه و تعالى of which He has warned those who engage in riba. There is also no guarantee that the one who trains in such a place will not be tempted by his self that is inclined towards evil to carry on working there because of the temptation he finds there.
Working in RIBA based bank as a Accountant, Maintenance or system Engg, driver, guard or cleaner etc.
Jabir رضي الله عنهsaid that Allah’s Messenger ﷺcursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal. Sahih Muslim 3881.
IMAM AL-NAWAWI رحمت اللهSAID
This is clearly a prohibition of the writing down or witnessing of a contract between the two parties involved in a riba-based deal. It also includes a prohibition of helping others to commit wrong acts. And Allah سبحانه و تعالى0knows best.
It is inevitable that the employee in a riba-based bank will play a part in riba dealings one way or another, even if he is just a security guard.
SHAYKH AL-BARRAAK رحمت اللهSAID:
If the operations of the bank are run in accordance with Islamic guidelines, there is nothing wrong with working there, even if it is not called an Islamic Bank. But if its operations are based on riba in lending and borrowing, or other haraam things, then it is not permissible to work there even if it is called an Islamic bank. What matters is what really happens, not mere names.
SHAYKH IBN UTHAYMEEN رحمت اللهSAID:
It is not permissible to work in a riba-based institution even if a person is working as a driver or guard, because that means that he is working for the riba-based institution, which implies that he approves of it. For whoever disapproves of a thing would not work to support it, so if he is working for it that implies that he approves of it, and the one who approves of something that is haram is also guilty of sin. Fataawa Islamiyah 2/401.
FURTHER HE SAID:
It is not permissible for a Muslim to work as a guard for banks that deal with riba, because this is a kind of cooperating in sin and transgression, and Allah سبحانه و تعالىhas forbidden that as He says: “but do not help one another in sin and transgression”Qur’an.Surah Maidah 5:2.
Most of the banks deal with riba, so you have to look for a halaal means of earning a living, not this way. Based on that, it is not permissible to train in a riba-based bank, because it requires writing down riba or witnessing it.Fataawa Islamiyah 2/401.
In fact all riba is haram, and it makes no difference whether it is between two Muslims or between a Muslim and a kaafir. The one who consumes riba and the one who pays it are both issued a stern warning. Allah سبحانه و تعالىsays: O you who believe! Have Taqwa of Allah سبحانه و تعالىand give up what remains from Riba, if you are (really) believers.
And if you do not do it, then take a notice of war from Allah سبحانه و تعالىand His Messenger ﷺbut if you repent,you shall have your capital sums. Deal not unjustly, and you shall not be dealt with unjustly. Qur’an.Surah Baqrah 2:278-279.
Jabir رضي الله عنهsaid that Allah’s Messenger ﷺcursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said:They are all equal. Sahih Muslim 3881.
IBN QUDAAMAH رحمت اللهSAID
The prohibition on riba in dar al-harb is the same as the prohibition on riba in dar al-Islam. This is the view of Maalik رحمت الله, al-Awzaa’I رحمت الله, Abu Yoosuf رحمت الله, al-Shaafa’i رحمت اللهand Ishaaq رحمت الله. … because Allah سبحانه و تعالىsays (interpretation of the meaning): “Those who consume Riba will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaytaan (Satan) leading him to insanity”Qur’an.Surah Baqrah 2:275.
O you who believe! Have Taqwa of Allah سبحانه و تعالىand give up what remains from Riba, if you are (really) believers.Qur’an.Surah Baqrah 2:278-279.
What is forbidden in dar al-Islam is also forbidden in dar al-harb, such as riba between two Muslims. AL-Mughni 4/47.
(Borrowing) LOAN from a riba-based bank in order to buy a house, other work etc.
Dealing with riba (usury, interest) is a major sin against which Allah سبحانه و تعالىhas issued a stern warning. He says (interpretation of the meaning): O you who believe! Have Taqwa of Allah سبحانه و تعالىand give up what remains from Riba, if you are (really) believers.
And if you do not do it, then take a notice of war from Allah سبحانه و تعالىand His Messenger ﷺbut if you repent, you shall have your capital sums. Deal not unjustly, and you shall not be dealt with unjustly. Qur’an.Surah Baqrah 2:278-279.
IBN QUDAAMAH رحمت اللهSAID:
Every loan in which it is stipulated that an additional payment be made is haram, with no scholarly dispute. Ibn al-Mundhir رضي الله عنهsaid: They are unanimously agreed that if the lender stipulates that the borrower must pay extra or give a gift, and he gives the loan on this basis, this is riba. It was narrated from Ubayy ibn Ka’b رضي الله عنه, Ibn ‘Abbaas رضي الله عنهand Ibn Mas’ood رضي الله عنهthat they forbade loans that lead to any kind of benefit (extra payment, gifts, etc).Al- Mughni 6/436.
It is haram to take a loan from banks or elsewhere with riba, whether that is to build something or to spend it on food, or to pay for studies, clothing or medical expenses or to start a business and earn more money, or any other purpose, because of the general meaning of the Ayaths that forbid riba, and the general meaning of the ahaadeeth which indicate that it is haram. Similarly it is not permissible to deposit money in banks etc that pay interest. Fatawa Al-Lajna Al-Daaimah 13/385.