Law on Borrowing Business Capital from Banks: Usury or Not?

darulmaarif.net – Indramayu, 06 November 2025 | 09.00 WIB

Indonesia’s economic data for 2024 shows positive movement in the business world. Based on reports Bank IndonesiaUntil June 2024, the total credit disbursed by commercial banks will reach approx IDR 7,478.4 trilliongrow 12.36% per year (Kontan.co.id, 2024).

This figure shows how many MSMEs and young entrepreneurs rely on capital loans from banks to expand their businesses.

However, for a Muslim, a fundamental question arises: What are the laws regarding lending business capital to a bank, especially if there is interest or additional elements in the contract? This question is not only about economics, but also touches on aspects of faith and the blessings of good fortune for customers who borrow business capital at the Bank.

Qardh Agreement and the Principle of Usury in Classical Fiqh

In Islamic jurisprudence, lending and borrowing transactions are known as al-qardhnamely providing loans without expecting anything in return. If the contract requires an addition to the return of the principal, then this addition is included usurywhich was unanimously condemned as illegal. Rasulullah SAW said:

Any loan that brings benefits is usury.

Meaning: “Every loan that attracts (additional) benefits is usury.” (HR. al-Baihaqi in Syu’abul Iman)

Although this hadith is considered weak by some scholars, its meaning is strengthened by the consensus of the companions and subsequent scholars, as confirmed in I’ānatut Ṭālibīn:

As for borrowing and borrowing with the condition that it brings benefits to the lender, it is not valid, based on the news that every loan and borrowing that brings benefits is usury, and the weaknesses are compensated. The meaning comes from a group of friends.

This means: “As for loans (qard) whose conditions require benefits for the lender, the law is void (invalid), based on the hadith ‘Every loan that attracts benefits is usury’. The weakness of this hadith is strengthened by the many histories of the Companions.” (I’ānatut Ṭālibīn, vol. 3, p. 53)

So, when someone borrows from a bank and is obliged to return it with a certain additional amount – for example borrowing IDR 1 million and being obliged to return IDR 1,260,000 – then that addition is included usury al-qardhbecause it is required from the beginning in the contract.

Voluntary Additions and Grants: No Usury If Unconditional

However, the jurists also make exceptions. If that’s the addition not required in the contractunless it is given voluntarily by the borrower after repayment, then it is permissible. In I’ānatut Ṭālibīn mentioned:

It’s not bad for the lender to take it as a gift, even if it is usury. The most likely reason is that the lender has such an advantage because it occurs as a result, and is also similar to a gift.

This means: “It is not makruh for the lender to receive additional items such as receiving gifts, even in loans based on ribawi goods. A strong opinion states that the lender has the right to the addition because it is a follower (tabi’), and resembles a gift.” (I’ānatut Ṭālibīnjuz 3, p. 53)

This means that if the addition is not a condition of the contract, but is simply a voluntary gift (grant) from the borrower after repayment, then it is not considered usury. However, if the addition becomes a mandatory contractual provision, then it still constitutes usury and is haram.

Customs of Unconditional Addition: Analysis of ‘Urf in Fiqh

In modern social contexts, there is sometimes a custom (‘urf) where borrowers return more than they borrowed as a form of gratitude, rather than out of obligation. Imam al-Suyuthi explains in al-Asya I belong to Nadzhoir:

Among them: If the borrower’s habit is to return more than what he borrowed, is this a conditional status? Is it forbidden to lend it? Two views, the correct one: no

Meaning: “If the community’s custom is to return more than what is borrowed, can this custom be used as a condition of the contract to the point that it is haram to give a loan? There are two opinions, and the stronger one is: no (not considered a condition).” (al-Asybah wan Nadzhoir, p. 175)

This shows that as long as the addition does not become a binding or required custom, it is not considered usury.

Contemporary Fiqh Solutions: The Middle Way in the Conventional Banking System

Contemporary scholars provide solutions so that Muslims can avoid ribawi practices in banking, without closing the door to the need for business capital. Some solutions that can be implemented include:

1. Avoid interest in contracts. If possible, look for sharia bank products with sale and purchase agreements (murabahah), profit sharing (mudharabah), or rent (ijarah).
2. Separate grant and loan contracts. Additional or rewards are given outside the main contract, in the form of vows or gifts.
3. Use a nadzar contract (promise) or grant. As mentioned in Ghāyah Talkhīṣ al-Murād:

Giving usury when borrowing, even though it is necessary, so that if he does not give and does not lend, he will not pay for his sin, because there are ways to deal with excess giving through vows or other reasons.

This means: “Giving an addition to a usurious loan, even if you are forced to, does not erase sin. However, there is a way to justify it, namely by making the addition a nadzar or reason for legal ownership.” (Ghāyah Talkhīṣ al-Murād, p. 129)

With this approach, a Muslim can continue to run his business without violating the limits of sharia, as long as he is able to ensure that the contract used does not contain additional mandatory conditions.

Final Reflection: Between Ethics and Blessing

Business life is not only measured by the amount of capital or profits, but also by the blessings of transactions. A Muslim entrepreneur should view capital not only as an economic resource, but also as a spiritual trust.

The law of borrowing from conventional banks which determines interest clearly constitutes usury, as confirmed in classical fiqh books. However, Indonesia’s socio-economic reality still places banks as a vital instrument of development. Therefore, it is best to try to find a halal way — through sharia banks, sharia cooperatives, or interest-free contracts.

As stated in the rules of fiqh:

Necessity permits prohibition

Meaning: “Emergencies can allow things that are haram.” (Qidah Fiqhiyyah, al-Majmu’ Syarh al-Muhadzdzab, Imam an-Nawawi)

However, this concession should not be a permanent justification for continuing to depend on the ribawi system. On the contrary, it must be a bridge towards an Islamic economic system that is more just, blessed and reassuring.

Borrowing business capital from banks is a real need in the midst of the modern economic system. However, for a Muslim, this need needs to be balanced with sharia awareness. Not just looking for capital, but maintaining the blessings of sustenance. Because what differentiates a successful business from a blessed business is not just the profit figures, but the sanctity of the contract.

Hope it is useful. Wallohu a’lam.