is forbidden. Likewise, if the debt falls due while the debtor is in hardship, he must be granted more time. By the agreement of the Muslims, he may not be compelled to roll over the debt at an increase. In any event, this transaction and similar transactions intended to exchange dirhams for a greater amount payable later are invalid, usurious transactions. Any property received through such a transaction must be returned if it still exists; if it no longer exists, its equivalent must be returned. The person who supplied it is entitled to no more than that. The ruler must prohibit these usurious transactions, punish those who engage in them, and restrict those involved to recovering their principal, without any additional amounts. This is among the forms of usury that Allah and His Messenger have forbidden.

Allah Most High says:

“Fear Allah and give up what remains of usury, if you are believers.”

“If you do not, then be warned of war from Allah and His Messenger. But if you repent, you may have your principal, neither wronging nor being wronged.”

“If the debtor is in hardship, then grant him time until it is easy for him to repay. But if you remit the debt as charity, that is better for you, if only you knew.”

He was asked:

A man had business dealings with another man, who fell into arrears on a sum of dirhams owed to him. He demanded repayment, although the debtor was in hardship. He then bought merchandise for him from a shopkeeper and sold it to him at a markup of one hundred dirhams, in return for granting him more time. Is this transaction valid?