Compound interest is haram upon haram

Question

Question: Zayd’s father is in the habit of consuming compound interest (interest upon interest). From his mother’s estate Zayd too is a shareholder in a certain debt instrument, and at the order of his usurer father he files a suit on that instrument and obtains a court decree for compound interest; and for the recovery, Zayd, having engaged an advocate (wakil)

Answer

Taking interest from a Muslim is haram, and compound interest is haram upon haram. Allah, Blessed and Exalted is He, said: [ar]يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوا۟ ٱلرِّبَوٰٓا۟ أَضْعَـٰفًا مُّضَـٰعَفَةً ۖ وَٱتَّقُوا۟ ٱللَّهَ لَعَلَّكُمْ تُفْلِحُونَ وَٱتَّقُوا۟ ٱلنَّارَ ٱلَّتِىٓ أُعِدَّتْ لِلْكَـٰفِرِينَ[/ar] “O you who believe, do not consume riba, doubled and…

Source: Fatawa Mahmudiyya

Preview. The full text opens with JavaScript enabled.