Arabic (ربا القروض) for riba associated with lending and borrowing (i.e., received in lending or paid in borrowing). It is a type of riba that constitutes an excess amount, pecuniary or non-pecuniary, over and above the principal (asl al-qardh) in a loan (qardh) that a borrower pays to the lender along with principal based on a precondition in the contract (aqd) or customary practices (urf). Riba al-qurudh also constitutes any excess amount paid for extension of a loan’s maturity date. The majority of fuqaha (jumhur al-fuqaha) are of consensus that riba in this sense holds the same meaning and import as the conventional notion of interest.
However, any excess amount or consideration (iwadh) given by a debtor out of his own accord, and without the compulsion of a contractual stipulation or custom is not tantamount to riba, but is rather attributed to husnul-qadhaa (حسن القضاء)- i.e., willingly offered by the borrower.
Riba al-qurudh is also known as riba al-Qur’an (ربا القرآن) as it is mentioned in the Qur’an. In conventional finance, is and is interest on loans.
It is also alternatively referred to as riba al-nasa’ (ربا النساء).
