What is the definition of Bay' al-'Inah and what is the ruling on dealing with it, knowing and being aware of it?

Linguistically, "al-inah" means "prepayment," or it comes from the idea of retrieving an eye, or from assisting its people for the one in dire need through stratagem. Terminologically, it is the sale of an object for an deferred higher price, so that the borrower can sell it for a lower, immediate price to pay off his debt, or that one sells something for a deferred price then buys it back for a lower cash price. It is also known as a loan in the form of a sale to legitimize an excess.

The most famous interpretation of the forbidden inah is that one sells a commodity for a deferred price, then buys it back for a lower cash price, and the difference between the two prices is usury for the original seller.

Scholars have differed on its ruling: - Abu Hanifa, Malik, and Ahmad: This sale is not permissible. - Muhammad ibn al-Hasan: He considered it an invention for those who consume usury. - Al-Shafi'i: It is reported from him that it is permissible, considering the apparent nature of the contract.

Those who prohibited it argued that it is a loan that brings benefit, and that it is a means to usury, citing the hadith of Aishah to Zayd ibn Arqam, may Allah be pleased with both of them, and the hadith of the Prophet, peace be upon him, who warned those who deal in inah. The preponderant view among the majority of jurists is its prohibition.