I was 19 years old and my uncle gave me money which he said I would need to return at the rate of gold. So basically if for example he gave me 100 PKR - he would consider it as an equivalent amount of gold on the day he would loan me the money. The loan for studies and was given over a period of time.

In the monetary terms, I have paid him twice the amount and the loan is still outstanding. Someone said that in Islam it would be considered as an interest (riba) in Islam!

1 Answer 1


It is clear that there is concern about the issue of the loan that your uncle gave you and how to repay it in accordance with the Shari'ah. Usury, interest, is forbidden in Islam, and is defined as the conditional increase in a loan or debt.

In your case, the formula your uncle used for the loan seems a bit complicated. He did not lend you money with direct cash interest, but linked the value of the loan to the value of gold. This method may lead to something similar to usury if the value paid in the end greatly exceeds the original value of the loan due to the rise in the value of gold.

Usury is not only related to the increase in the loan, but also to terms that are unfair or cause harm to one of the parties. When giving or taking a loan, one should do so in good faith and on fair terms that do not burden the other party my dear brother, so you have to discuss this with your uncle.

I would still recommend you to consult a mufti or to obtain a fatwa tailored to the details of your case. He can provide further guidance based on detailed information about the loan, its terms, and the repayment method you both agreed upon.

Wa as-salaam!

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