Interest (Riba) is Prohibited

Allah prohibits His believing servants from dealing in Riba and from requiring interest on their capital, just as they used to do during the time of Jahiliyyah. For instance, when the time to pay a loan comes, the creditor would say to the debtor, "Either pay now, or the loan will incur interest." If the debtor asks for deferment of the loan, the creditor would require interest and this would occur year after year until the little capital becomes multiplied many times. Allah also commands His servants to have Taqwa of Him so that they may achieve success in this life and the Hereafter. Allah also threatens them with the Fire and warns them against it, saying,

وَاتَّقُواْ النَّارَ الَّتِى أُعِدَّتْ لِلْكَـفِرِينَ - وَأَطِيعُواْ اللَّهَ وَالرَّسُولَ لَعَلَّكُمْ تُرْحَمُونَ

The meaning of doubled and multiplied

The detailed rules regarding 'riba' and the philosophy underlying its prohibition have been discussed thoroughly in Surah al-Baqarah verses 275-278 (Volume 1 of this commentary). However, it may be pointed out here that words أَضْعَافًا مُّضَاعَفَةً of (doubled and multiplied) used in this verse do not mean that the prohibition of 'riba' is restricted only to a transaction where the interest is doubled or multiplied. In fact, these words are not used in a restrictive sense, because it is evident from Surah al-Baqarah that 'riba' or interest is prohibited in any case, even though its rate is not so high as to make it doubled or multiplied.