Tutorial Chapter 1
Types of Riba
Riba Al-Duyun
Riba Al Qard
Definition: increase (interest) on
the principal sum of the loan Is
agreed upon at the point of
contract.
Example: Ali wants to borrow
RM1,000 from Abu. But Abu set a
condition that Ali must repay the
debt of RM1,200. The surplus of
RM200 is riba ad-Duyun type of al-
Qardh.
Riba Al-Buyu’
Riba Al Jahilliyah Riba Al Fadl Riba Al Nasi’ah
Definition: the increase levied on
the borrower for late repayment Definition: Happen in unequal Definition: Due to the extension of
exchange of its counterpart. time of delivery.
or failure to repay the financial
Example: a sale of 100 kg of dates
loan.
Example: Exchange 10 grams to be paid back with 120 kg six
Example: Ali agreed to give Abu a of gold for 12 grams of gold. month later.
loan of RM500 and is required to This type of exchange is illegal
repay one month from now. But if because it is supposed that
both must be of equal weight
Abu fails to pay Ali’s debt before
(example: 10 grams or 12
or in the 1 month, then Abu is
grams).
required to pay Ali RM600. The
surplus of RM100 is riba Al Duyun
type of al-Jahiliyyah.
Types of Gharar
 Minor Gharar
Major Gharar

Definition: Minor gharar is forgiven as it does not render Definition: The gharar that causes a contract to be
a sale contract defective. It is a gharar which does not invalid is major (excessive) gharar.
affect the principal components of the contract and
necessary conditions of the essential elements.

Example: a fisherman sells 100 KG of fish that he hasn’t

Example: asset, price, language of the contract caught yet