Is a loan that brings a moral benefit, such as the feeling of being favored by the borrowing employer, considered usury (riba)?
A loan is not devoid of benefit for both the lender and the borrower, and a loan is not prohibited because of this benefit. The prohibited benefit is that which is stipulated in the loan, such as the lender stipulating the rent of his house or shop, or that the borrower marry his daughter. Thus, every loan that brings a stipulated benefit is usury (riba). If the benefit is not stipulated in the loan, such as the borrower giving a gift to the lender after the loan, then there is no harm in accepting it. In fact, it is commendable for the one who owes a debt to repay more than what he borrowed. This does not fall under the category of a loan that brings benefit because it was not stipulated. Therefore, there is no harm in lending to a boss at work with the intention of a good loan, and if the boss rewards him, there is no objection to that.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 54050
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- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy