dirhams in exchange for dirhams on deferred payment, then whatever means they use to achieve this, it is forbidden, because the intended objective is forbidden and may not lawfully be pursued. Indeed, the early generations prohibited many such transactions as a preventive measure, lest they lead to this objective.

This usurer is entitled to claim from people only what he gave them or its equivalent. He is not entitled to any of the additional amounts. However, he is excused for whatever he previously collected on the basis of an interpretation. Any usurious amounts still owed to him are cancelled, for Allah says:

“Give up what remains of usury.”

And Allah knows best.

He was asked:

A man wished to obtain credit from another man, who said, “I will give you each hundred at a profit of such-and-such.” They then conducted a sale involving some merchandise. When the debt fell due, the creditor demanded repayment, but the debtor was unable to pay. The debtor said, “Roll over my debt at a profit of such-and-such per hundred.” They then conducted a sale involving real estate. At the end of every year, they repeated this arrangement, their aim in all these sales being to act lawfully, until the amount reached ten thousand dirhams. Is the creditor entitled to demand from the man the additional amounts accrued over this long period? Is the ruler entitled to denounce this, or not?

He replied:

For a person to say to another, “I will extend you credit for each hundred at a profit of such-and-such”