738 – ʿAlī (may Allah be pleased with him) reported that the Messenger of Allah (peace and blessings be upon him) said, “Every loan that yields a benefit is usury.” This was narrated by al-Hārith ibn Abī Usāmah, but its chain of transmission is invalid (1). A weak corroborating report from Fudālah ibn ʿUbayd (may Allah be pleased with him) appears in al-Bayhaqī (2), and another corroborating report, mawqūf, from ʿAbd Allah ibn Salām (may Allah be pleased with him) is found in al-Bukhārī (3).
Degree of authenticity:
The hadith is weak. Al-Baghawī recorded it, saying: “Suwār ibn Muṣʿab narrated to us from ʿImārah, from ʿAlī ibn Abī Ṭālib, as a statement traced back to the Prophet.” This isnād is extremely weak. Ibn ʿAbd al-Hādī remarked, “Its chain is worthless,” and Suwār has been rejected as a narrator. ʿUmar al-Mawṣilī said, “Nothing sound has been transmitted on this matter.”
Despite its weakness, there are supporting reports—mawqūf—attributed to Ibn Masʿūd, Ubayy ibn Kaʿb, ʿAbd Allah ibn Salām, Ibn ʿAbbās, and Fudālah ibn ʿUbayd. In addition, the scholars unanimously agree on the ruling conveyed and act upon it.
Points derived from the hadith:
- The aim of a benevolent loan is to show kindness and assist the needy borrower; the lender’s profit lies in doing good and hoping for Allah’s reward.
- Accordingly, any increase or benefit taken from the borrower in return for the loan is prohibited.