Types of Ribaa (Interest)

1. Riba al-Nase’ah

• To charge a specified increase or profit on a specific amount lent for a given period.

 Also known as:

• Riba al-Jahiliyyah

• Riba al-Qur’an

2. Riba al-Fadhl 

• Excess that is taken in the exchange of homogeneous commodities and is encountered in their hand to hand purchase and sale.

 Also known as:

• Riba al-Bey‘

• Riba al-Hadith

 Riba al-Fadhl 

It is reported from Abu Sa‘eed al-Khudari , he said: the Messenger of Allah said: “[Exchange] gold with gold, silver with silver, wheat with wheat, barley with barley, dates with dates, salt with salt in equal quantities and spot.  Anyone who increases the quantity or asks for increase indulges in riba.  The receiver and payer are equal in this.”[Muslim]

It is reported from ‘Ubadah b. al-Saamit , he said: the Messenger of Allah said: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt, like for like, equal for equal, and hand to hand.  If these commodities differ, then you may as you wish, provided that the exchange is hand to hand.” [Muslim]

Umar is reported to have said:

Three issues are such where I wish the Prophet had explained them to us in further detail.  [Two of these relate to inheritance, viz.] the grandfather and kalaalah [deceased who has no ascendants or descendants], and certain chapters of Riba.[Ibn Majah]

Six (6)different commodities

1. Gold       2. Silver

3. Wheat    4. Barley

5. Dates     6. Salt

•Hanafi

 Weight and genus  (gold & silver)

 Volume and genus  (wheat, barley, dates & salt)

•Shafi‘ee

 Medium of exchange and genus   (gold & silver)

 Edible and genus   (wheat, barley, dates & salt)

•Maaliki

 Medium of exchange and genus    (gold & silver)

 Preservable and genus (also edible   according to some)

• Hanbali

 Same as Hanafi

 Same as Shafi‘ee

 Edible, weight and volume