Riba and Salam
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Question: We have a type of transaction that people have become accustomed to in some of our rural areas and villages.And specifically in the autumn season: The weak or the poor person comes to those with means and to merchants and asks them for some items on credit, such as money, corn, or the like, until the time of harvest. The merchants then deliver to him, for example, a sack of corn
on the condition that he delivers to them two sacks of corn, or three sacks after the harvest, or they deliver to him, for example, an amount of ten pounds, on the condition that he delivers to them a sack of corn at the time of harvest, knowing that the current value of a sack of corn is one hundred pounds.And in summary: So that every debt must have a return of double or triple. What is the ruling on this transaction? And what is the ruling regarding these people and their exploitation of their weak brothers in such a transaction from a religious perspective? Is their work lawful or forbidden?
Answer: As for what was mentioned at the beginning of the question, that he is given a sack of corn on the condition that he returns two sacks of corn after a period of time, this is not permissible, because this is riba (usury or interest). It combines riba al-fadl (usury of excess in a like-for-like exchange) and riba al-nasi'ah (usury of deferment). Therefore, it is not permissible under any circumstances if this is in the category of sale and exchange.
As for what was mentioned at the end of the question, that he is given money on the condition that he delivers corn after a term, there is nothing wrong with this. This is called a salam debt, which is paying the price in advance and deferring the delivery of the item. There is nothing wrong with this, and it is permissible based on the Sunnah of the Prophet (peace and blessings be upon him), and it is called a salam debt.
And as for what was mentioned that: For example, the rich person doubles and increases the profit for the poor person. For example, he gives him a small amount of money and takes back from him at the due date a large amount of food, more than double. This is not appropriate. It is not appropriate to exploit the poor person's need and burden him with an increase. Rather, what is appropriate is that the increase be reasonable, benefiting the rich person without harming the poor person excessively.
on the condition that he delivers to them two sacks of corn, or three sacks after the harvest, or they deliver to him, for example, an amount of ten pounds, on the condition that he delivers to them a sack of corn at the time of harvest, knowing that the current value of a sack of corn is one hundred pounds.And in summary: So that every debt must have a return of double or triple. What is the ruling on this transaction? And what is the ruling regarding these people and their exploitation of their weak brothers in such a transaction from a religious perspective? Is their work lawful or forbidden?
Answer: As for what was mentioned at the beginning of the question, that he is given a sack of corn on the condition that he returns two sacks of corn after a period of time, this is not permissible, because this is riba (usury or interest). It combines riba al-fadl (usury of excess in a like-for-like exchange) and riba al-nasi'ah (usury of deferment). Therefore, it is not permissible under any circumstances if this is in the category of sale and exchange.
As for what was mentioned at the end of the question, that he is given money on the condition that he delivers corn after a term, there is nothing wrong with this. This is called a salam debt, which is paying the price in advance and deferring the delivery of the item. There is nothing wrong with this, and it is permissible based on the Sunnah of the Prophet (peace and blessings be upon him), and it is called a salam debt.
And as for what was mentioned that: For example, the rich person doubles and increases the profit for the poor person. For example, he gives him a small amount of money and takes back from him at the due date a large amount of food, more than double. This is not appropriate. It is not appropriate to exploit the poor person's need and burden him with an increase. Rather, what is appropriate is that the increase be reasonable, benefiting the rich person without harming the poor person excessively.