Riba al-nasiah
Riba of deferment: an increase stipulated in return for extra time, most commonly on a loan.
Riba al-nasiah is the form of riba linked to deferment. IFSB-24 describes it as an increase in return for deferment in a qard, or loan, contract. It covers a lender stipulating repayment above the principal and charging more for extending the due date of a debt. It is the form of riba most directly relevant to conventional interest.
Sources
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
RibaAn increase over principal that Shariah prohibits: extra stipulated on a loan, or an unequal exchange of certain like-for-like goods.Riba al-fadlRiba of excess: an unequal exchange of the same kind of certain goods, such as gold for a larger quantity of gold.QardA loan of money to be repaid in an equivalent amount; any benefit stipulated for the lender is riba.Bay al-muajjal (deferred-payment sale)A sale in which the goods are delivered now and the price is paid later, in one sum or in instalments.