A general explanation of the three aforementioned hadiths.
Machine translationRead the Arabic original
The Shaykh : These are three hadiths explaining the categories in which `riba` (usury or interest) occurs, and also explaining the types of `riba`. They clarify what constitutes `riba` and clarify its types.
`Riba` is of two types: `riba al-fadl` (usury of excess in a like-for-like exchange) and `riba al-nasi'ah` (usury of deferment).
The second is called obvious `riba`, and the first is called hidden `riba`. It has been said that the second, which is `riba al-fadl`, was prohibited because it is a means to `riba al-nasi'ah`, and Allah knows best. But in any case, we say that `riba` is of two types: obvious, clear `riba`, which is `riba al-nasi'ah`.
And the second is hidden `riba`, which is `riba al-fadl`, meaning excess.
As for `riba al-nasi'ah`, it is the deferred one, such as selling gold for gold with a delay. The norm is that it does not occur without excess, because it is not reasonable for a person to take a dinar weighing one mithqal immediately for a dinar weighing one mithqal deferred. This does not happen in the case of exchange. As for the case of a loan, the matter is clear, but in the case of exchange.
So `riba al-nasi'ah` is never free from `riba al-fadl`, which is why it is called obvious and clear. As for `riba al-fadl`, `riba al-fadl` also occurs frequently, but the exchange between the same type may happen without excess for one of the reasons, as will come later.
The important point is that `riba al-nasi'ah` applies to the sale of any two types that agree in the operative cause of `riba al-fadl`, between any two types that agree in the operative cause of `riba al-fadl`. If the exchange occurs between one type, both `riba al-fadl` and `riba al-nasi'ah` are present, `riba al-fadl` and `riba al-nasi'ah`. This is the rule. So `riba al-nasi'ah` occurs through exchange between two types subject to `riba`.
And `riba al-fadl` occurs through excess between one type.
So if the type is the same, two conditions are required:
The first condition is equality, and the second condition is taking possession before parting.
If one of them is increased over the other with taking possession, it is `riba al-fadl`. If taking possession of one of them is delayed without excess, it is `riba al-nasi'ah`. If one of them is delayed with excess, it is `riba al-fadl` and `riba al-nasi'ah`. Is that clear? So they may coincide or they may differ. This is when a type is sold for its own type.
If it is sold for a different type that shares with it in the cause of `riba`, only one type of `riba` applies, which is `riba al-nasi'ah`. As for `riba al-fadl`, it does not apply, such as wheat for barley. They are two types that agree in the operative cause of `riba al-fadl`, so delay between them is forbidden, but excess is not forbidden. Well, this is the summary of what is said about `riba`.
There are assets that are not subject to `riba`. These do not have `riba al-fadl` or `riba al-nasi'ah`. You may sell them with excess, you may sell them with delay, it does not matter.
`Riba` is of two types: `riba al-fadl` (usury of excess in a like-for-like exchange) and `riba al-nasi'ah` (usury of deferment).
The second is called obvious `riba`, and the first is called hidden `riba`. It has been said that the second, which is `riba al-fadl`, was prohibited because it is a means to `riba al-nasi'ah`, and Allah knows best. But in any case, we say that `riba` is of two types: obvious, clear `riba`, which is `riba al-nasi'ah`.
And the second is hidden `riba`, which is `riba al-fadl`, meaning excess.
As for `riba al-nasi'ah`, it is the deferred one, such as selling gold for gold with a delay. The norm is that it does not occur without excess, because it is not reasonable for a person to take a dinar weighing one mithqal immediately for a dinar weighing one mithqal deferred. This does not happen in the case of exchange. As for the case of a loan, the matter is clear, but in the case of exchange.
So `riba al-nasi'ah` is never free from `riba al-fadl`, which is why it is called obvious and clear. As for `riba al-fadl`, `riba al-fadl` also occurs frequently, but the exchange between the same type may happen without excess for one of the reasons, as will come later.
The important point is that `riba al-nasi'ah` applies to the sale of any two types that agree in the operative cause of `riba al-fadl`, between any two types that agree in the operative cause of `riba al-fadl`. If the exchange occurs between one type, both `riba al-fadl` and `riba al-nasi'ah` are present, `riba al-fadl` and `riba al-nasi'ah`. This is the rule. So `riba al-nasi'ah` occurs through exchange between two types subject to `riba`.
And `riba al-fadl` occurs through excess between one type.
So if the type is the same, two conditions are required:
The first condition is equality, and the second condition is taking possession before parting.
If one of them is increased over the other with taking possession, it is `riba al-fadl`. If taking possession of one of them is delayed without excess, it is `riba al-nasi'ah`. If one of them is delayed with excess, it is `riba al-fadl` and `riba al-nasi'ah`. Is that clear? So they may coincide or they may differ. This is when a type is sold for its own type.
If it is sold for a different type that shares with it in the cause of `riba`, only one type of `riba` applies, which is `riba al-nasi'ah`. As for `riba al-fadl`, it does not apply, such as wheat for barley. They are two types that agree in the operative cause of `riba al-fadl`, so delay between them is forbidden, but excess is not forbidden. Well, this is the summary of what is said about `riba`.
There are assets that are not subject to `riba`. These do not have `riba al-fadl` or `riba al-nasi'ah`. You may sell them with excess, you may sell them with delay, it does not matter.