An Arabic term (قرض ربوي) that denotes “interest-bearing loan” (riba-based qardh). In other words, qardh ribawi is a loan extended by a lender to a borrower with the stipulation of an excess for the lender, whether in terms of quality or quantity or whether the excess is a tangible item or a benefit (e.g., service rendered in connection with the loan).

Shari’a prohibits the stipulation of an excess for a lender in a qardh (loan) and considers such an excess “explicit riba”, whether it is stipulated at the time of contracting or while extending the loan duration (period of delay) for repayment or during that period. This prohibition holds whether it is expressed in writing or is based on customary practice (urf).

Furthermore, shari’a doesn’t permit the stipulation of a contract of sale (aqd al-ba’i) or lease (ijarah) or other commutative contracts within the contract of qardh, because this is tantamount to riba. The Prophet (pbuh) said: “the combination of a salaf (loan) and a sale (in one contract) is impermissible” (Sunan Abi Dawud, Hadith no. 3504).