Why are Interest bearing transactions (Usury) forbidden in Islam, Christianity and Judaism?
The taking of interest implies taking over somebody else’s property without giving anything in exchange, because one who lends one pound and gets two back gets an extra pound for nothing. Dependence on interest prevents people from working to earn money, since the person with the pound can earn an extra pound through interest, either in advance or at a later date, without working for it. The value of labour will be reduced in the sight of this person. Why should he take the trouble of running a business or risking his money in trade or industry if he can interest more easily? By this means, interest may deprive the people of the benefits that would otherwise arise from money being invested into useful production and services. Interest requires the needy person to pay back more than he has borrowed thereby increasing the wealth of rich lender and decreasing the wealth of the poor borrower. In desperate situations the lender can exploit the weakness of the poor, giving rise to feelings o
