Studying the Status of the Interest Free Loan Regarding Non-Usury Banking Law in Islamic Republic of Iran

This Loan, as a part of economic system with social results, is emphasized in Quran and narratives. Verses of Quran about loan represent its moral and material effects and God will multiply rewards of the loan. The current study investigates the status of the interest free loan in Islamic Republic of Iran and aims to show relationship between interest free loan and removing usury in Islamic society. It is concluded that interest free loan in IRI is established to exclude usury banking, but the little amounts of profits taken from interest free loan is approved by the majority of Islamic scholars. According to some Islamic scholars, this type of banking is in contrast with other illegal high profit banks. Therefore, promoting interests of depositors should be considered in development of Islamic banks.