Fatwa No : 85292
Taking a Loan and Repaying It in Installments with an Additional Amount

Taking a Loan and Repaying It in Installments with an Additional Amount

I work in a company. One day, a friend told me that his friend is poor and wants to give furniture to his niece for her wedding, so he asked me to arrange the furniture for him at a discounted rate. I agreed. Then they checked the market rate of the furniture, which was 25,000 rupees. They said to me: “You give us 25,000 rupees, and we will pay you back 35,000 rupees in installments of 1,500 rupees per month.” I gave them my ATM card and also shared my PIN code with my friend, instructing him strictly to purchase the furniture with that money. Kindly guide me: is the additional 10,000 rupees considered interest (riba) or not?

الجوابُ حامِدا ًو مُصلیِّا ً

It is clear that in the mentioned case, giving a loan of 25,000 rupees and taking back 35,000 rupees falls under the ruling of interest (riba). Therefore, receiving this additional amount is impermissible and haram according to Shariah. The questioner must only recover the principal amount and not take anything extra—unless, after purchasing the furniture, the questioner’s agent took possession of it and then sold it to the concerned people in installments for 35,000 rupees. In that case, taking the additional amount would be permissible according to Shariah.

مأخَذُ الفَتوی

کما قال اللہ تعالی: وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا (سورۃ البقرۃ الآیۃ 275)۔
و فی ردالمحتار: تحت (قوله كل قرض جر نفعا حرام) أي إذا كان مشروطا كما علم مما نقله عن البحر، وعن الخلاصة وفي الذخيرة وإن لم يكن النفع مشروطا في القرض، فعلى قول الكرخي لا بأس به الخ (5/166)۔
و فی الدرالمختار: له ألف من ثمن مبيع فقال: أعط كل شهر مائة فليس بتأجيل بزازية. الخ (4/533)۔
و فی البحر الرائق: ولا يجوز قرض جر نفعا بأن أقرضه دراهم مكسرة بشرط رد صحيحة أو أقرضه طعاما في مكان بشرط رده في مكان آخر فإن قضاه أجود بلا شرط جاز، الخ (6/133)۔