Yes, riba (interest or usury) is considered haram (forbidden) in Shia Islam, just as it is in Sunni Islam.
Riba, in its essence, is seen as an exploitative practice that unfairly benefits the lender at the expense of the borrower. Both Sunni and Shia scholars generally agree on the prohibition of riba based on Quranic verses and Hadith (sayings and actions of Prophet Muhammad, peace be upon him).
While the principle of riba being haram is universally accepted within Shia Islam, discussions and interpretations can vary regarding what specifically constitutes riba and how to avoid it in modern financial transactions. This is similar to the debates seen within Sunni jurisprudence.
Here's a breakdown:
- Quranic Basis: Shia scholars rely on verses in the Quran that explicitly prohibit riba.
- Hadith: The sayings and traditions of the Prophet Muhammad (peace be upon him) and the Imams (leaders in Shia Islam) further reinforce the prohibition.
- Consensus (Ijma): There's a consensus among Shia scholars throughout history regarding the impermissibility of riba.
- Modern Applications: Just like Sunni scholars, Shia scholars engage in ongoing discussions about the application of these principles to modern financial instruments and transactions to ensure compliance with Islamic law. This includes exploring alternatives like Islamic banking and finance that avoid interest-based transactions.
Therefore, engaging in transactions involving riba is considered a sin in Shia Islam.
