The loan that yields a benefit
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Fatwa number ( 20666 )
Q: Muhammad bought a car for 10,000 pounds. He paid 8,000 pounds and the remaining 2,000 pounds was due in 30 days. Then he sold the car for a profit, with the payment due in a full year, and he did not receive anything. When the month ended, he did not find what to pay his debt (2,000) with, so he said to Khalid: Give me 2,000 pounds, and you will have a share of the profit from the car that I sold for the value of the 2,000 pounds, which you will receive next year.
Is this permissible in the Shari'ah, or is it considered riba?
A: This transaction mentioned in the question is not permissible; it is a loan that yields a benefit, and every loan that yields a benefit is riba. This is because the one who will lend you this money will take it back along with an increase in money, and that is forbidden. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: Muhammad bought a car for 10,000 pounds. He paid 8,000 pounds and the remaining 2,000 pounds was due in 30 days. Then he sold the car for a profit, with the payment due in a full year, and he did not receive anything. When the month ended, he did not find what to pay his debt (2,000) with, so he said to Khalid: Give me 2,000 pounds, and you will have a share of the profit from the car that I sold for the value of the 2,000 pounds, which you will receive next year.
Is this permissible in the Shari'ah, or is it considered riba?
A: This transaction mentioned in the question is not permissible; it is a loan that yields a benefit, and every loan that yields a benefit is riba. This is because the one who will lend you this money will take it back along with an increase in money, and that is forbidden. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.