Islam has directly or indirectly forbidden all the practices that entail riba/ususry, uncertainty or gambling because such practices lead to hordes of evil in the society.
I have discussed about the economic evils of riba in my previous post. In this post I shall discuss about its social and moral evils.
The concentration of wealth in the capitalist interest-based economies is in the hands of a few industrialists who can borrow huge amounts from the banks and then make exorbitant profits. This transfers the wealth of the depositors, many of who are underprivileged, to the well- established industrialists. The consequent inequality of income leads to social inequalities such as lack of opportunities to the underprivileged.
In the interest-based system, similar interest rates are charged from the people belonging to different socio-economic strata, which is quite indiscriminate and socially unjust. For instance, a needy person, who may require a loan for the treatment of his family member or education of his children, may also have to pay as much interest as would an industrialist who may be stinking rich.
The unjust system of interest erodes the moral fabric of a society. The high ideals of mutual co-operation, brotherhood, unity, philanthropy and compassion get replaced by cut-throat business strategies, unfair competition, conflicts and greed.
So we find from the above discussion that the concept of riba is evil because it is based on greed and exploitation instead of humanity and morality. Even from the practical viewpoint it has been found that the riba-free Islamic society, based on profit-loss sharing, can be more innovative, financially stabilizing, ethical and just.
Keep Me In Your Prayers.