Fath al-Rabbani

Benefits: … From the hadith of Sayyiduna Usamah radi Allahu anhu, it is understood that in the exchange of one kind (of commodity), there is no usury (riba) in the case of an increase or decrease from one side. However, there is consensus (ijma‘) among the Muslims that the apparent meaning of this hadith will not be acted upon, as Imam Nawawi has stated in Sharh Muslim, and Imam Khattabi has said in (I‘lam al-Hadith: 2/1067): The people of knowledge have interpreted the hadith of Sayyiduna Usamah radi Allahu anhu in such a way that he only heard the last part of the hadith, and the first part was missed by him. The situation is as follows: when the Messenger of Allah sallallahu alayhi wa sallam was asked about selling dates in exchange for barley, or dates in exchange for wheat, or gold in exchange for silver with an excess (tafadul), he sallallahu alayhi wa sallam said: “Indeed, riba is only in deferred payment (nasi’ah).” … “Usury is only in deferred payment.” The intent of the Messenger of Allah sallallahu alayhi wa sallam was that in this type of issue, usury will be found in deferred payment, meaning that when the commodities are different, then an excess is permissible, provided that the transaction is hand to hand (spot transaction). However, when deferment enters into it, then usury will necessarily occur. This interpretation and meaning is based on the fact that there is consensus of the Ummah contrary to the apparent meaning of the narration of Sayyiduna Usamah radi Allahu anhu. If Imam Khattabi’s interpretation is not accepted, and it is said that the Messenger of Allah sallallahu alayhi wa sallam in this hadith only declared riba al-nasi’ah to be unlawful, then in light of other specific texts, riba al-fadl will also be considered prohibited.

The real basis for making this interpretation is that, according to the hadiths, the form of riba al-fadl is impermissible and unlawful, therefore it is not possible to say in a general sense that usury is only in deferred payment. The people of knowledge also interpret the statement “usury is only in deferred payment” in another way: that the greater part of usury, or most of usury, is in deferred payment; the intent is not that there is no form of usury other than deferred payment. It is like when it is said, “The poet is only so-and-so,” or “The orator is only so-and-so.” The intent is not to negate the poetry or oratory of others, but rather to refer to the one who is at the highest level of poetry or oratory. (Abdullah Rafiq)