The transaction in question combines two abominable kinds of Ribaa
19-7-2011 | IslamWeb
Question:
I have a friend who was waiting to receive a bank money order from another country in order to send it with someone who would then travel to another country. However, the bank money order did not reach on time. Therefore, he asked me for a loan saying, “If I do not receive this amount of money today, I must travel or I will lose 700 dollars in addition to the hardship of traveling.” So, he suggested giving me 700 dollars in return for providing him with the needed amount of money. Is this amount of money considered Ribaa? Please advise me.
Answer:
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu 'alyhi wa sallam, is His slave and Messenger.
Such a transaction is Ribaa and it is prohibited. It falls under Ribaa An-Nasee’ah (delayed) and Ribaa Al-Fadhl (excess) which are prohibited by the Quran, Sunnah and consensus of Muslim scholars. It is considered to be Ribaa Al-Fadhl because the lender will take his money in addition to an extra amount, i.e. the 700 dollars. The delay of one of the two payments causes this transaction to be a form of Ribaa An-Nasee’ah. Hence, this dealing is a Ribaa-based, which is forbidden. Traveling, facing hardships and losing an amount of money do not justify dealing in Ribaa. Lawful means must be pursued even if they are difficult and unlawful means must be avoided even if they are easy. Allaah The Almighty blesses lawful gains and eradicates blessings from the unlawful ones and those who acquire them.