Giving a gift to one's creditor after paying back a loan

Q: For the creditor to accept extra gifts from the debtor is impermissible due to it being riba. When the debtor pays his loan back in full, and at the same time decides to give the creditor a gift/extra money for his help, would this be riba, or is it that since the loan is over the creditor can accept this gift?

A: If giving the gift was made a condition in the loan agreement, then this is riba. However, if it was not made a condition and has not become an accepted norm of society, but the debtor out of his own good will at the time he pays back the loan gives the creditor a gift, it will be permissible.

And Allah Ta'ala (الله تعالى) knows best.


Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)