Is Taking Extra Money on Credit Considered Interest (Ribā)? – An Islamic Ruling
Source: Fatāwā Rashidiyyah, p. 468
❖ Question:
Zayd gives one man (Bakar) a maund of wheat on the condition that although the current price is 15 rupees per maund, if Bakar pays in the fourth or fifth month, he must pay 5 rupees extra, i.e., a total of 20 rupees. Is such a transaction permissible or not?
❖ Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu wa-s-salāmu ‘alā Rasūlillāh, ammā ba‘d!
From the situation described, it is clear that the extra 5 rupees are being charged only because the payment is deferred for four or five months. In other words, this additional amount is taken solely in exchange for delay in payment.
✿ Key Points of the Ruling
① In this transaction, Bakar is given only one maund of wheat, and in return, he is not provided any additional wheat or other commodity.
② The five extra rupees are charged solely due to the delay in payment, i.e., if payment was made immediately, the price would have been 15 rupees, but since it is deferred, 20 rupees are taken.
③ Since this additional payment has no genuine counter-value (such as more wheat or another commodity), but is taken purely in exchange for deferred time, it constitutes ribā (usury/interest).
④ According to the Qur’an, ribā is explicitly harām (forbidden), therefore such a deal is impermissible in Sharī‘ah.
⑤ It makes no difference whether both parties mutually agree to such a transaction or not.
- Once Allah has declared something harām, human mutual consent cannot make it permissible.
Conclusion:Taking additional money on credit solely due to delayed payment is ribā (interest) and is strictly prohibited in Islam.
