Correctly interpreted according to Shariah terminology the word “Riba” means excess, increase, or addition, which, implies any excess compensation without due consideration (the consideration does not include the time value of money). This definition of Riba is derived from the Quran and is unanimously accepted by all Islamic scholars.

The meaning of Riba has been clarified in the following verses of the Quran (Surah Al Baqarah 2:278-9)

“O those who believe; fear Allah and give up what remains of the Riba if you are believers. But if you do not do so, then be warned of war from Allah and His Messenger. If you repent even now, you have the right of the return of your principal; neither will you do wrong nor will you be wronged.”