Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Assalamualaikum wa Rehmatullahi wa Barakatuhu,

This is about riba. I had heard something as a very brief note from a welll known scholar of fique but I am in doubt whether what I heard is what he meant. Is there an element of riba in a loan lent if the lender seeks any sort of profit from the loan? If u want me to make this clearer, assume I lend $200 to a friend and I tell him at the time of lending money to return me the $200 in the dinomination of smaller notes......would this scenario involve any element of riba?

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Answer:

Riba clarification

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Your Question: Is there an element of riba in a loan lent if the lender seeks any sort of profit from the loan?

If the lender seeks or gets any material benefit whatsoever for his loan, then indeed whatever is received in excess of the principal amount will be definitely considered as ‘riba’.

Your Question: If u want me to make this clearer, assume I lend $200 to a friend and I tell him at the time of lending money to return me the $200 in the dinomination of smaller notes......

If one lends $200.00 and asks the person to return the exact same amount of $200.00 in smaller notes….there is absolutely no harm and it would not be ‘riba’, unless of course in some society the smaller notes (for some reason) hold more value than a larger note, then indeed that would be ‘riba’.

If the nett value of smaller notes and bigger notes in any given society is exactly the same, then returning the amount in smaller notes would not constitute ‘riba’.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan