What is the ruling on taking a loan and repaying it with an increase in monthly installments?
Machine translationRead the Arabic original
Question:
A person asked me for a loan of 5,000 riyals, and we agreed that the amount would be 7,000, paid in monthly installments of 1,200 riyals according to the agreement between us. We wrote the contract, then I bought him communication cards for 5,000 riyals and handed them to him, and I wrote the contract between us. What is the ruling on this?
Answer:
This is explicit riba (usury or interest), this is explicit riba, and may Allah protect us from it, and it is not permissible. That is, selling dirhams for dirhams that are more than them, selling dirhams for dirhams deferred in payment, more than them, in installments. This is the explicit riba; this transaction is not permissible.
A person asked me for a loan of 5,000 riyals, and we agreed that the amount would be 7,000, paid in monthly installments of 1,200 riyals according to the agreement between us. We wrote the contract, then I bought him communication cards for 5,000 riyals and handed them to him, and I wrote the contract between us. What is the ruling on this?
Answer:
This is explicit riba (usury or interest), this is explicit riba, and may Allah protect us from it, and it is not permissible. That is, selling dirhams for dirhams that are more than them, selling dirhams for dirhams deferred in payment, more than them, in installments. This is the explicit riba; this transaction is not permissible.
Source
قناة «العلامة الدكتور صالح الفوزان»، ما حكم أخذ قرض ورده بزيادة مُقسَّطًا شهريًّا؟ #فتاوى الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.