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Sunan Abi Dawud 3402 (Book 23, Hadith 77) #23692
Usury is Forbidden

SUMMARY: The Prophet ﷺ warned against usury and instructed to return the land to its owner and take wages for labor.

Narrated Rafi' ibn Khadij: Rafi' had cultivated a land. The Prophet passed him when he was watering it. So he asked him: To whom does the crop belong, and to whom does the land belong? He replied: The crop is mine for my seed and labour. The half (of the crop) is mine and the half for so-and-so. He said: You conducted usurious transaction. Return the land to its owner and take your wages and cost.
حَدَّثَنَا هَارُونُ بْنُ عَبْدِ اللَّهِ، حَدَّثَنَا الْفَضْلُ بْنُ دُكَيْنٍ، حَدَّثَنَا بُكَيْرٌ، - يَعْنِي ابْنَ عَامِرٍ - عَنِ ابْنِ أَبِي نُعْمٍ، حَدَّثَنِي رَافِعُ بْنُ خَدِيجٍ، أَنَّهُ زَرَعَ أَرْضًا فَمَرَّ بِهِ النَّبِيُّ وَهُوَ يَسْقِيهَا فَسَأَلَهُ ‏"‏ لِمَنِ الزَّرْعُ وَلِمَنِ الأَرْضُ ‏"‏ ‏.‏ فَقَالَ زَرْعِي بِبَذْرِي وَعَمَلِي لِيَ الشَّطْرُ وَلِبَنِي فُلاَنٍ الشَّطْرُ ‏.‏ فَقَالَ ‏"‏ أَرْبَيْتُمَا فَرُدَّ الأَرْضَ عَلَى أَهْلِهَا وَخُذْ نَفَقَتَكَ

TOPICS
usury  *  transaction  *  return  *  wages  *  riba  *  muamalah  *  ada  *  ujrah

QUICK LESSONS:
Do not engage in any kind of usurious transactions; Be honest with your dealings; Strive for justice even if it means sacrificing your own interests or gains; Respect other people's property rights; Follow Islamic teachings on financial matters .

EXPLANATIONS:
This hadith speaks about the prohibition of usurious transactions. It was narrated by Rafi’ ibn Khadij that he had cultivated a land and when the Prophet passed him while he was watering it, he asked him to whom does the crop belong and to whom does the land belong? He replied that it belonged to him for his seed and labour but half of it belonged to someone else. The Prophet then warned against this kind of transaction as it is considered usurious. He instructed Rafi’ ibn Khadij to return the land back to its owner and take his wages for labor instead. This hadith teaches us that we should not engage in any kind of usurious transactions as they are forbidden in Islam. We should also be honest with our dealings with others so that we can maintain good relationships with them. Furthermore, we should always strive for justice even if it means sacrificing our own interests or gains in order to do so.

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