Repaying a loan in accordance to the inflation rate

 

Nasihah (Advice): Repaying a loan – The help of Allah

 

Sayyidatuna Maimoonah Radhiyallahu Anha heard Rasulullah Sallallahu Alayhi Wa Sallam saying: “Whoever takes a loan intending to pay it back, Allah, the Mighty and Sublime, will help him (in repaying it)’’. (Nasaai)

________________________________________________

 

Question and Answer:

 

1. I had given loans to family and friends over the years. They are paying me back now. Can I ask them to pay me in accordance to the rate inflation over the years?

 

1. A.A creditor cannot ask his debtor to pay him back his loan in accordance to the rate of inflation over the previous years as the excess amount will be Haraam and tantamount to Riba (interest).

 

The exact amount of money given as a loan by a creditor to his debtor must be paid back in the same amount. The rate of inflation over the years will not effect the payment of the loan in any way. (Shaami 5/162)

 

And Allah Ta’ala Knows Best

Mufti Ebrahim Desai