Lending out money with interest in Islam is considered Ribā, which is prohibited in Islamic finance. Ribā refers to the charging or paying of interest on loans, and is considered to be exploitative and unjust, as it allows lenders to profit from the misfortunes of others and creates an unequal distribution of wealth.
In Islamic finance, instead of interest-based loans, other financial instruments are used that are considered to be more in line with Islamic principles, such as profit and loss sharing, leasing, and deferred payment. These instruments allow for economic activity to be conducted in a way that is consistent with Islamic values, while still enabling individuals and businesses to obtain the funds they need to carry out their activities.
Overall, the prohibition of Ribā is an important aspect of Islamic finance, and is seen as a means of promoting economic justice and fairness, while ensuring that financial transactions are conducted in a way that is consistent with Islamic principles.