As Sharia law deals with what is lawful and unlawful or permitted and prohibited acts pertaining to all the major aspects of life - and that includes commercial law covering businesses and private transactions, riba or (interest) has been one of the most widely known and discussed subjects. This paper, without going into the core subject of what constitutes interest, will directly engage with the penal aspect of riba in Islam i.e. the penal consequences and what type of punishments it may carry or has been prescribed by Sharia.