Is Charging Extra on a Loan Considered Interest?

Answered by 

Shaykh Ebrahim Salejee

Q: If I loan someone money, for example, I loan someone R10 and we agree that they will pay me R15 in 10 months time, R5 more than what I loaned them, is that extra money considered interest?

Bismillaah

A: This is pure interest.

And Allah Ta’ala (الله تعالى) knows best.

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)


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This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

Tags: Interest, loan

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