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Is dealing with a person who borrows a sum of money and pledges to return it along with a larger amount in case of profit considered an interest-bearing loan or a voidable Mudarabah? And if it is a voidable Mudarabah, does the capital return to its owner and the Mudarabah become nullified, or does the Mudarabah continue with the voidable condition being nullified?

1 min readAlso available in العربية

This transaction is a loan, not a Mudarabah (partnership). The borrower is obligated to repay the loan without any increase. The lender must not accept any increase on the loan if it was stipulated at the time of the contract.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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