Usury of Loan
Issue No.1948- If a person who offers a loan makes a condition that he will take back more than what he gives, it will be usury and haram, irrespective of whether it is a commodity which is purchased and sold by weight, volume, or calculation. Rather, if he stipulates that the debtor should, apart from the repayment, do some work for him, or repay the loan along with a quantity of another commodity, for example, if he lays down the condition that the debtor should return the money taken on loan along with a quantity of another commodity (e.g., wheat) or if the creditor gives as loan a quantity of unmanufactured gold, and imposes the condition that the debtor should return him the same quantity but of manufactured gold, all these are usury and haram. However, if no condition is imposed by the creditor and the debtor himself decides to repay something more than what he borrowed, there is no problem in it, and it is rather recommended to do so.
