Explanation of the Hadith: Every loan that yields a benefit is riba
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Question:
We conclude this session, Honorable Shaykh, with his final question. He says: What is the meaning of the hadith
Answer:
"Every loan that yields a benefit is riba," and what is the nature of that? The hadith is clear that the intention behind a loan is to be kind, not to invest. That is, you lend your needy brother a sum of money that he benefits from, and then he repays it. This is the loan, and it is the good loan intended for reward, not for investment. As for investment, it is seeking benefit from the borrower. The benefit is either an increase in the loan, or a service, or living in a house, or any other benefit. So if you take a benefit from the borrower because of the loan, then this is the increase that constitutes riba. Every loan that yields a benefit is riba, whether this benefit is financial or a benefit from other benefits. Yes.
We conclude this session, Honorable Shaykh, with his final question. He says: What is the meaning of the hadith
Answer:
"Every loan that yields a benefit is riba," and what is the nature of that? The hadith is clear that the intention behind a loan is to be kind, not to invest. That is, you lend your needy brother a sum of money that he benefits from, and then he repays it. This is the loan, and it is the good loan intended for reward, not for investment. As for investment, it is seeking benefit from the borrower. The benefit is either an increase in the loan, or a service, or living in a house, or any other benefit. So if you take a benefit from the borrower because of the loan, then this is the increase that constitutes riba. Every loan that yields a benefit is riba, whether this benefit is financial or a benefit from other benefits. Yes.
Source
نور على الدرب - الفوزان - 03/168 — archive.org (20:35)
The Arabic text is a machine transcription of the audio recording.