Giving something extra when repaying a loan

Question

Question: It is stated in “Ma la budda minhu” (ما لا بد منه) that whenever the Messenger of Allah ﷺ borrowed from someone, he would give something extra. What is the ruling on giving extra willingly in this way? Will it not be interest for the one who receives it?

Answer

When repaying, giving something extra to the one from whom the loan was taken, saying, “This much is your original claim, and this much is extra from my side,” is established by the noble hadith. However, the lender should not have, beforehand, any greed or expectation that he will be given more.

Source: Fatawa Mahmudiyya

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