Businesses and Institutions Find Creative Ways to Get Around Islam's Ban on Usury

May 19, 2001

Source: The Washington Post

On May 19, 2001, The Washington Post reported that "the world of American finance is changing to deliver more options, thanks to demand from the growing number of observant Muslims in the United States and their adherence to Islam's moral code on financial matters. Islam prohibits usury, or interest...What makes interest-free financing possible is a system in which the capital supplier shares ownership -- and risk -- with the consumer...As Islam grows in the United States, it's not just for-profit lenders who are rethinking business as usual. Institutions of varied stripes are taking unusual steps to get money into the hands of observant Muslims."