Can I give the lender a gift when repaying a loan?
The Prophet repaid a debt and gave more, saying the best people are those who repay best. That is the model: an extra that was never agreed and never expected. Once the lender required it, or everyone understood from the start that borrowers add something, the extra is a return on the loan. What is customary counts as if it were written in the contract.
The guidance
I’m repaying a loan and want to give the lender something extra. Is it allowed?
- I repay in full and, unasked, add a gift of thanksHalal · Good repayment · Sahih al-BukhariThe Prophet repaid a debt to Jabir and gave him extra, and said the best people are those who repay best. A free, unplanned gift at repayment is a kindness, not riba.Other views: The Maliki and Hanbali schools are stricter about gifts given while the loan is still running, unless such gifts were usual between the two before it.
- The extra was agreed, or everyone expected it, when I borrowedHaram · Riba · Loan with benefitIf the lender required it, or it was understood from the start, the extra is a return on the loan. That is riba, even if it is called a gift. What is customary counts as if it were written in the contract.Gifts during the loan that only happen because of it should also be avoided.
People also ask
My friend lent me money and I want to repay with a gift. Is it halal?
Yes, if it was not agreed, not hinted at, and not the usual practice between you or in your circle. Give it as thanks, not as a price.
Can I accept a gift from someone who owes me money?
Hanafis allow a gift that was neither agreed nor expected. The Maliki and Hanbali schools are stricter about gifts given while the loan is still running, unless such gifts were usual between you before it.
Everyone in our community adds a little when repaying. Is that riba?
When it is expected, yes. An extra that custom demands is like an extra the contract demands.
Related questions
All questionsThe four schools on riba
This guidance follows the Hanafi school as applied today by Mufti Taqi Usmani and the AAOIFI standards. Notes mark where the Maliki, Shafi’i or Hanbali schools differ. The four schools on riba →