Asking for a Loan and Offering an Incentive

Fatwa ID: 03527

Answered by: Maulana Mohammed Kamran Abid

 

Question 

 

Salam. Is it halal if I ask someone for a loan and offer to pay them back 10% extra as an incentive? This would be straightforward riba, right?  

 

 

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم  

In the name of Allah, the Most Gracious, the Most Merciful 

 

 

Answer: 

 

Wa alaykumus Salaam. Allah says in the Quran, Allah has permitted trade and forbidden usury.1

  

There is a principle in Islamic jurisprudence that any loan which has a benefit is not permissible.

 

Therefore, it would not permissible to ask someone for a loan and offer to pay them 10% extra because the extra amount would be considered riba.2 

 

 

Only Allah knows best 

 

Written by Maulana Mohammed Kamran Abid 

Checked and approved by Mufti Mohammed Tosir Miah 

Darul Ifta Birmingham 

 


[1] (Surah al-Baqarah, verse 275) 

[2] [مَطْلَبٌ كُلُّ قَرْضٍ جَرَّ نَفْعًا حَرَامٌ] 

(قَوْلُهُ كُلُّ قَرْضٍ جَرَّ نَفْعًا حَرَامٌ) أَيْ إذَا كَانَ مَشْرُوطًا كَمَا عُلِمَ مِمَّا نَقَلَهُ عَنْ الْبَحْرِ، وَعَنْ الْخُلَاصَةِ وَفِي الذَّخِيرَةِ وَإِنْ لَمْ يَكُنْ النَّفْعُ مَشْرُوطًا فِي الْقَرْضِ، فَعَلَى قَوْلِ الْكَرْخِيِّ لَا بَأْسَ بِهِ وَيَأْتِي تَمَامُهُ …  

فِي جَوَاهِرِ الْفَتَاوَى إذَا كَانَ مَشْرُوطًا صَارَ قَرْضًا فِيهِ مَنْفَعَةٌ وَهُوَ رِبًا وَإِلَّا فَلَا بَأْسَ بِهِ اهـ. (Radd al-Muhtaar, vol. 5, pg. 166, Darul Fikr Beirut) 

 

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