Rafiq
Ask Rafiq
Interest money is not yours to keep and not yours to spend on yourself — it must be disposed of. If you took it knowing it was riba (interest, the increase charged on a loan or debt), the obligation is to get rid of it by directing it to charitable causes, with the intention of ridding yourself of unlawful wealth, not of earning reward. If you received it before you knew it was forbidden, the scholars hold that what has already passed is yours.
Why it cannot stay with you
The scholars begin from the fact that what banks call "interest" is the riba Allah prohibited and warned of war against those who persist in it. The Qur'an sets out the rule for the one who repents:
"But if you repent, you shall have your principal, neither wronging nor being wronged."— Qur'an 2:279
The Prophet ﷺ also cursed everyone connected to it. Jabir رضي الله عنه reported:
"The Messenger of Allah ﷺ cursed the one who consumes riba, the one who feeds it to others, the one who records it, and its two witnesses. And he said: They are all alike."— Sahih Muslim 1598, from Jabir ibn Abdullah
So the principal is yours; the increase is not. Ibn Baz put it plainly: the interest is not the property of its recipient, and it must be spent in the ways of goodness.
What to do with it
The scholars describe two situations, and the answer depends on which one you are in.
- If the interest is still in your hand: dispose of it immediately. Ibn Baz and the Permanent Committee hold that it should be paid out in charitable works — supporting the poor, helping those in need, and similar avenues of birr (righteousness). The intention is to be free of the unlawful money, not to seek nearness to Allah through it, because Allah is pure and accepts only what is pure.
- If you already spent it before you knew it was forbidden: you are not required to replace it. The verse "whoever receives admonition from his Lord and desists shall have what has already passed" (Qur'an 2:275) is the evidence the scholars cite. Ibn Baz applied this directly: if a person collected the interest before knowing Allah's ruling on it, it is his and he does not have to remove it from his wealth.
- If you took it knowing it was forbidden: the obligation to be rid of it remains, together with repentance for having taken it. The Permanent Committee, in a reply issued under Ibn Baz, held that whatever is established to have been earned through riba must be left, and that there is no harm in receiving it and spending it on acts of goodness, such as consoling the poor, to be rid of it and free one's account.
Where the money may go
The scholars differ on the precise destination, and the difference is worth knowing.
The widely held position
Ibn Baz and the Permanent Committee permit paying it to the poor, to those in debt, to needy relatives, and to general charitable projects — mosques, hospitals, schools, roads and the like. Ibn Uthaymeen, asked about interest from banks or company savings schemes, gave the same answer: give it in charity, whether building mosques, settling the debts of those unable to pay, or helping needy relatives, "for all of this is good."
The stricter position
Some scholars held that it should not be given to the poor or anyone else as a direct gift, because it is khabith (foul) wealth and Allah accepts only what is pure. Al-Tayyar records this view and notes the alternative: direct it into projects that have no element of personal consumption — schools, roads, public facilities — so that the benefit reaches people without the money being consumed as food or drink.
The practical difference
| Situation | What the scholars say |
|---|---|
| Interest still in hand, taken knowingly | Dispose of it in charitable causes, intending removal of the unlawful, not reward |
| Interest already spent before knowing | It is yours; no replacement owed |
| Profit from a business built on interest capital | Disputed — some say all of it, some say half, some permit it to the earner |
If you are unsure how much
If you do not know the exact amount you received, the scholars advise estimating carefully and giving out what you most likely owe, so that your conscience is clear. This applies whether the money came recently or in past years. If you earned it in a foreign currency, you may give its equivalent in your current currency at today's value.
If you are unable to give it all
If you have repented and genuinely cannot discharge the full amount, the scholars state that your repentance is sufficient. The obligation is according to ability.
Key takeaways
- Interest is not your wealth: it must be removed from your possession, not kept or invested for yourself.
- Intention matters: give it to rid yourself of the unlawful, not as a charitable act seeking reward.
- Past ignorance is excused: what you received and spent before knowing the ruling is yours to keep.
- Knowledge changes the obligation: if you took it knowing it was forbidden, you repent and must still give all of it away.
- When in doubt, estimate: give out what you most likely owe; if you truly cannot, repentance suffices.
Further reading
- Ibn Baz, Majmu' al-Fatawa
- Ibn Baz, Tuhfat al-Ikhwan
- Al-Tayyar, Wabl al-Ghamamah
And Allah knows best.
Sources4
This is a guide to what the scholars have said, not a fatwa. For your own situation, ask a qualified scholar who can hear the details.