What is the difference between a loan and riba (usury or interest)?
Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, I hope you will clarify or explain to us the difference between a loan and riba?
Answer:
A loan is not taken with an increase; rather, it is given to one who needs an amount to meet his need, and he repays the equivalent without an increase, without any condition of an increase being imposed on him. If an increase is imposed on him, it becomes riba. If the lender imposes an increase on the borrower, it becomes riba. Or if he imposes a benefit rather than an increase in wealth, such as residing in his house, riding in his car, or being carried in his car, this is also riba. The Messenger (peace and blessings be upon him) said:Bulugh al-Maram 7:99 Although there is discussion regarding this hadith, the scholars have agreed upon its meaning. Yes.
He says: Honorable Shaykh, I hope you will clarify or explain to us the difference between a loan and riba?
Answer:
A loan is not taken with an increase; rather, it is given to one who needs an amount to meet his need, and he repays the equivalent without an increase, without any condition of an increase being imposed on him. If an increase is imposed on him, it becomes riba. If the lender imposes an increase on the borrower, it becomes riba. Or if he imposes a benefit rather than an increase in wealth, such as residing in his house, riding in his car, or being carried in his car, this is also riba. The Messenger (peace and blessings be upon him) said:
Every loan, which leads to a benefit, is usury.
كُلُّ قَرْضٍ جَرَّ مَنْفَعَةً فَهُوَ رِبًا
Source
قناة «العلامة الدكتور صالح الفوزان»، ما الفرق بين القرض والربا؟ الشيخ صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.