The Meaning of the Hadith: Every Loan That Yields a Benefit Is Riba

Question:
Every loan that yields a benefit is riba (usury or interest). What is the meaning of this? And what is an example of it? Does this include what we call the association among colleagues in the workplace?

Answer:
. This is a hadith, and although there is a discussion regarding its chain of narration, the scholars have agreed upon its meaning, on the correctness of its meaning. They agreed that every loan that yields a benefit is riba. A loan is when you give a person money to benefit from it and to satisfy his need, and then he returns it to you. This is the loan, and you have no reward in it; this is called the good loan.
As for the one who lends to people for the sake of profit, for the sake of investment, for the sake of benefiting from them by living in a house, riding in a car, or anything else that is known to be exploited by them, this is not permissible. This is haram (forbidden) and riba. It is riba even if it is not money. Even if it is a benefit, it is riba. This is not permissible.
And from these is the association among employees. I see that it falls under this category; because it yields a benefit, because you lend to your colleagues in order to take the loan yourself when your turn comes. So it is a loan that yields a benefit. Also, it is a conditional loan, so it is like two sales in one sale, which is prohibited. Yes. But they argue, O Shaykh Salih, saying that this amount does not increase. The benefit increases when you benefit. We said that the increase is the benefit, even if it is not money. Yes.

The presenter:
May Allah reward you.