The Difference Between Debt, Loan, and Forward Sale
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The Difference Between Debt, Loan, and Forward Sale
What is the difference between debt, loan, and forward sale?
Debt, according to the jurists, is anything that becomes established in the liability, whether it is a loan, the price of a sale, a rent that the lessee has not paid, or anything else. Anything that becomes established in the liability is considered a debt by the scholars. Accordingly, a loan and a forward sale are two types of debt.
As for the general public, debt to them is: To sell a commodity for a deferred price that is higher than its spot price, so that the buyer can sell it and benefit from its price. This is what debt means to the general public.As for the Shari'ah and the scholars, debt is: Anything that becomes established in the liability, whether it is the price of a sale, a loan, a forward sale, or anything else.
What is the difference between debt, loan, and forward sale?
Debt, according to the jurists, is anything that becomes established in the liability, whether it is a loan, the price of a sale, a rent that the lessee has not paid, or anything else. Anything that becomes established in the liability is considered a debt by the scholars. Accordingly, a loan and a forward sale are two types of debt.
As for the general public, debt to them is: To sell a commodity for a deferred price that is higher than its spot price, so that the buyer can sell it and benefit from its price. This is what debt means to the general public.As for the Shari'ah and the scholars, debt is: Anything that becomes established in the liability, whether it is the price of a sale, a loan, a forward sale, or anything else.