Question:
1) is it permissible to repay interest with interest?
Answer:
Fatwaa no. 169/03
It will be permissible to repay interest with interest if it is carried out in the same bank, i.e. repay the interest to the same bank from which he had received the interest and the deal is settled through adjusting documents (on paper) and not by him physically attaining the interest and then repaying it. However, one should repent from indulging in such transactions, although he will not be as sinful as physically receiving and repaying interest. (Imdaadul Fataawaa, Vol. 3, Page 173)
And Allah Ta’ala knows best,
Ilyaas bin Hashim Limbada
Attested to as correct by:
Mufti Muhammad Ashraf
Darul Iftaa
Jameah Mahmoodiyah
Springs
01 September 2003
04 Rajab 1424