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Recovery Of Loan Given In The Past Without Terms
I paid university fee of one of my relative about six years back in foreign currency and did not set any condition for return. We spoke over the phone at that time that how much would be cost of course and he explained that it would be equivalent to Pak currency this much.
Now I demanded the money back as he is well off, and asked him to pay back me money in the currency I paid. He is insisting to pay in Pak currency and according to rate which was at that time. Pak currency has devalued.
My question is, will it fall in “Riba” if I ask him to return the exact same amount which I paid as fee for him in foreign currency ( He thinks it is Riba if I ask him to return money in foreign currency the amount in Pak Rs would be higher).
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2 Replies
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Recovery Of Loan Given In The Past Without Terms
updated 3 months, 3 weeks ago
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You can recover the loan amount in actual currency of disbursement and even you can recover time value of money (i.e. adjustment for inflation) from the other party, it is not Riba. However such matters should have been agreed upon at the time of disbursement of loan and such matters should be in writing (as per Quran 2:282:283). In the absence of any such agreement, it is advised to reach a mutual consensus on the payment method in order to avoid any bigger conflict.
Please refer to the video below from 41:18 to 44:09
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Please also refer to the video below from 19:38 to 20:19
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