Riba al-fadl and riba an-nasi'a: the difference explained with examples
AmanaFi team · Updated · 1 min read
Riba al-fadl concerns an unequal immediate exchange of like goods; riba an-nasi'a concerns a surplus demanded in exchange for a delay. Both are forbidden, but for different reasons and in different situations.
Riba an-nasi'a: the paid delay
You lend 10,000 DH and are paid back 10,500 at maturity because there was a delay: the 500 is riba. This is the form matching the interest of a standard loan.
Riba al-fadl: the unequal exchange
It targets the exchange of goods of the same kind with an excess, such as 100 g of gold for 105 g of gold, even on the spot. The texts name six reference goods which jurists extend to silver and currencies.
- Same kind: exchange in equal quantity.
- Different kinds: quantity may vary, but payment on the spot is required when they share the same underlying reason, for example gold for silver or currency for currency.
What to keep in mind in practice
Buying gold or silver must be done with immediate handover, without deferred payment. A currency exchange is also done on the spot. For a specific case, ask a qualified person: details depend on schools.
Frequently asked
Is buying gold on credit permitted?
According to the dominant view, buying gold or silver with money requires immediate handover on both sides: deferred payment is not accepted.
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