Arabic (ربا القرض) 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-qard) in a loan (qard) that a borrower pays to the lender along with principal based on a precondition in the contract (aqd) or customary practices (urf). Riba al-qard 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 (iwad) 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-qadaa (حسن القضاء)- i.e., willingly offered by the borrower.

Riba al-qard is also known as riba al-Qur’an (ربا القرآن) as it is mentioned in the Qur’an. In conventional finance, it is interest on loans.

It is also alternatively referred to as riba al-nasa’ (ربا النساء).