Fixing a term for repaying a loan

Question

Question: Please clarify in this matter: is fixing a term for a loan — for its recovery — impermissible? Are recovering a loan and recovering for a thing sold on credit both the same? And is the indeterminate (majhul) and the like permissible? For example: “I will give it in a week or ten days.” Please explain in some detail.

Answer

Fixing a term for the recovery of a loan does not make that term binding; rather, the right to demand remains even before it. According to the Shari‘a a loan (qard) is, for example, when one took ten rupees and promised to return them in fifteen days.

Source: Fatawa Mahmudiyya

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