Types of loans that comply with the Shari'ah

Question:
The listener, Abdullah al-Bahili from al-Majma', asks: What are the types of loans that comply with the Shari'ah? And what is meant by the hadith, "Every loan that brings a benefit is riba (usury or interest)"?

Answer:
The loans that comply with the Shari'ah are the good loans from which one expects nothing but reward and recompense from Allah. You lend your brother a sum of money to meet his need, and then he returns it. This is the good loan. In it is reward from Allah, and in it is doing good to your brother. Yes.

Question:
And the hadith about every loan.

Answer:
Every loan that yields a benefit is riba (usury or interest). This is a matter of scholarly consensus. Although the hadith is weak, the consensus of the scholars, along with the hadith, establishes that an investment loan is riba. Therefore, an investment loan is not permissible. Rather, it is the good loan that is not invested in, but rather meets your brother’s need, and then he returns your money to you. Yes.