Riba is a word used to describe adding extra amount upon returning borrowed money or things in order to delay it. It is one of two types according to the method followed but in both cases it is strictly forbidden.

Two: Riba al-Nasi’ah (i.e. increase for a delay)

This refers to an additional quantity of one of the exchanged items in return for delayed payment, or in return for delayed possession in the sale of two kinds that share the reason applicable to riba al-Fadl, when one of them is not money. To give an example: One person sells 1,000 kilograms of wheat in return for 1,200 kilograms of wheat to be given in a year’s time. The other form is to sell one kilogram of barley for one kilogram of wheat, but no exchange of the goods takes place. 

This type of deal is forbidden, and all the texts that forbid and warn against usury in the Qur’an and the Sunnah primarily include this type of usury. It is the one that was practised in pre-Islamic days and is the type offered by usurious banks in our present time.[1]

Abu Sa'id al-Khudri reported that the Prophet( peace be upon him) mentioned gold and silver and then said: