No, interest (riba) is haram (forbidden) in Islam. Here are the key points explaining why:

Quranic Prohibition

Allah explicitly forbids riba in the Quran. The verses state: “O you who believe! Be afraid of Allah and give up what remains (due to you) from riba (usury) (from now onward), if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger…” (Al-Baqarah 2:278-279).

Understanding Riba

Riba involves adding something extra to certain products, like selling gold for gold at different quantities or paying extra for the extension of a loan. This is prohibited because it exploits others and leads to unjust enrichment.

Mutual Consent Doesn’t Make It Halal

In Islamic Shari`ah, mutual consent to commit a haram deed, such as engaging in riba, does not make it halal. Just as mutual consent does not make zina (fornication) halal, it does not make riba permissible either.

Harmful Effects

Engaging in riba harms individuals and society. Man may not always understand what is beneficial or harmful, but Allah has prohibited riba to protect people from its detrimental effects.

Halal Alternatives

Islam provides halal alternatives to earning profit. For example:

• Silent Partnership (Mudarabah): In this arrangement, one person provides capital to another for investment in a business. The profit is shared according to an agreed-upon ratio, but the investor does not guarantee the capital, except in cases of negligence or misconduct.

Conclusion

Interest is strictly haram in Islam, regardless of mutual agreement or personal justification. Muslims are encouraged to seek halal ways to earn profit and conduct business.

For more detailed information, please refer to IslamQA.