What is the ruling of the Shari'ah on an agreement that stipulates the borrower must return an additional sum of five thousand Riyals over the original loan amount of ten thousand Riyals, after two years from the date of borrowing? And is it permissible for the lender to receive this increment?
Source: FtawySummarized from the full answer at Ftawy · reviewed Sep 2, 2026
It is not permissible to convert a debt owed to you by your debtor into a Mudarabah (profit-sharing) fund between you two, as there is a consensus among scholars on this matter. Likewise, it is not permissible to take money as a condition for a loan, because that is usury (riba).
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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