Is Riba related only to consumption loans or it applies to commercial loans also?

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Posted by:
Sanny Kolliner
17-September-2023

Loan Servicing Islamic Finance Bank Financing Banking Finance

Question added by Bassem Al-Ahmad , Financial Director , ADR
Date Posted: 2014/03/16

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by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

The interest is prohibited whether it is consumption loan (loan for meeting day to day human needs) or commercial loan (loan for business purpose). There are quite a number of ahadith which clarify that in the days of Holy prophet, people not only borrowed for consumption purposes but also for productive purposes.

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Is Riba related only to consumption loans or it applies to commercial loans also?

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