In the name of Allah, the Most Compassionate, the Most Merciful. Blessings and peace be upon our master Muḥammad, his family, and his Companions.

Chapter: Deferred Sales, the “Drop-and-Advance” Discount, and Bayʿ al-ʿīnah

The form of ribā (usury) on which there is unanimous agreement is the one Allah mentions when He says, “So fear Allah and give up what remains of usury” (Q 2:278). Zayd ibn Aslam related that the people of pre-Islamic times, when a debt fell due, would say to the debtor, “Either repay me, or augment (turbi),” that is, “add to what you owe me in return for my granting you another term.” The extra amount thus became the price of the second deferment, and Allah Himself called it ribā, a designation accepted by consensus among the scholars who interpret the Qur’an.

The very same rationale applies to the “drop-and-advance” arrangement, for the creditor shortens the period in proportion to the amount he remits; it is simply the reverse image of the first practice. Reflect on this and you will see the equivalence. That is why Mālik, may Allah have mercy on him, declared that “drop-and-advance” is a form of ribā. An example is a man who