The ruling on one who borrows a loan with an interest rate
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This is a letter from the questioner, Umar Ahmad al-Kututabi, from Sudan. He says: What is the ruling on a man who borrows a sum of money with a percentage? Is there riba in this or not?
Answer: If he borrows a sum of money with a percentage interest, this is riba. If he borrows, for example, one thousand riyals from his brother on the condition that he will return one thousand and fifty riyals, this is riba. Or if he borrows one hundred on the condition that he will return one hundred and two riyals, or one hundred and three, this is riba. There is no disagreement among the scholars of knowledge regarding this. It is not permissible for him to do this; rather, he must return only the principal. He is only obligated to return the principal. Yes.
The presenter: May Allah reward you with good, and may Allah bless you.
Answer: If he borrows a sum of money with a percentage interest, this is riba. If he borrows, for example, one thousand riyals from his brother on the condition that he will return one thousand and fifty riyals, this is riba. Or if he borrows one hundred on the condition that he will return one hundred and two riyals, or one hundred and three, this is riba. There is no disagreement among the scholars of knowledge regarding this. It is not permissible for him to do this; rather, he must return only the principal. He is only obligated to return the principal. Yes.
The presenter: May Allah reward you with good, and may Allah bless you.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.