✿ Written by: Saudi Fatwa Committee (Fatāwā)
❖ Question:
What is the ruling on giving someone a loan with the condition that he returns it within a specific period, and then the lender also agrees to lend him the same amount for the same period again? Does this fall under the ḥadīth: “Every loan that brings benefit is riba”—even though no excess amount was stipulated?
❖ Answer:
This type of loan is not permissible, because it is based on a conditional agreement where the lender requires that the borrower must also lend him the same amount for the same term. This falls under the category of two transactions in one, which is prohibited in Islamic commercial law.
Additionally, it involves a stipulated benefit—that the borrower will lend back the same amount—making it a conditional benefit tied to the loan. Scholars are unanimous that any loan involving agreed-upon additional benefit is riba (interest).
The ḥadīth:
"كل قرض جرّ نفعًا فهو ربا"
“Every loan that brings benefit is riba”
is weak in terms of chain (sanad), but a group of companions (ṣaḥābah) have issued statements that align with its meaning and implication.
Reference:
Ibn Bāz – Majmūʿ al-Fatāwā wa al-Maqālāt, 19/294
❖ Every Loan That Brings Benefit Is Riba (Interest)
❖ Question:
What is the ruling on giving someone a loan with the condition that he returns it within a specific period, and then the lender also agrees to lend him the same amount for the same period again? Does this fall under the ḥadīth: “Every loan that brings benefit is riba”—even though no excess amount was stipulated?
❖ Answer:
This type of loan is not permissible, because it is based on a conditional agreement where the lender requires that the borrower must also lend him the same amount for the same term. This falls under the category of two transactions in one, which is prohibited in Islamic commercial law.
Additionally, it involves a stipulated benefit—that the borrower will lend back the same amount—making it a conditional benefit tied to the loan. Scholars are unanimous that any loan involving agreed-upon additional benefit is riba (interest).
❖ About the Ḥadīth
The ḥadīth:
"كل قرض جرّ نفعًا فهو ربا"
“Every loan that brings benefit is riba”
is weak in terms of chain (sanad), but a group of companions (ṣaḥābah) have issued statements that align with its meaning and implication.
Reference:
Ibn Bāz – Majmūʿ al-Fatāwā wa al-Maqālāt, 19/294
