Debt and Loan: Permissibility of Accepting Voluntary Extra Payment on a Loan

Practical Laws of Islam as per the teachings of Imam Khamenei

Debt and Loan: Permissibility of Accepting Voluntary Extra Payment on a Loan

English:

Question #1743:

A friend of mine, who owns a factory, borrowed from me a sum of money. After a while, he returned the money with an extra amount which he paid of his own free will. It is worth mentioning, though, that we did not sign an agreement to the effect that he should give me that extra money. For my part, I didn’t expect him to give me extra. Is it shar‘ī to take that additional amount of money?

Answer #1743:

If, after the owner had sanctioned the very sale, he sanctioned the receipt of the money as well, the person who concluded the deal should pay the price plus inflation to the original owner. If the owner had rejected the sale, the seller should try his best to return the same property to its owner if possible. Otherwise, he should compensate the owner whether with a similar property or with its value. As based on caution, however, he must reach a settlement with the owner about the difference between the price at the time of payment and the price at the time of transaction.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Debt and Loan