Bay' al-Dayn
بيع الدين
Pronunciation: BY-uh ad-DAYN
Sale of debt: trading a receivable for cash, permitted only at face value by most scholars.
Definition
The sale of a debt or receivable to a third party. Because a debt is money owed, selling it for a different amount of money is an exchange of money for money with a difference, which most scholars treat as riba.
The majority (and AAOIFI) permit transferring a debt only at face value; Malaysian scholars have historically allowed discounted sale of trade receivables. The ruling matters for invoice factoring, the secondary market in financing contracts, and any fund that holds debt instruments, including conventional bonds and Murabaha receivables.
Related Terms
Daynدين
Debt: a fixed obligation owed by one party to another, which Islamic law protects but forbids trading for profit.
Hawalahحوالة
Transfer of a debt from one debtor to another, and the basis of informal and formal remittance systems.
Sukukصكوك
Islamic investment certificates - structured as ownership shares in assets rather than debt obligations.
Ribaربا
Interest or usury - the most strictly prohibited practice in Islamic finance.
Riba al-Nasi'ahربا النسيئة
Riba of delay: any increase charged for time on a debt, which is what modern interest is.
Riba al-Fadlربا الفضل
Riba of excess: unequal exchange of the same ribawi commodity, such as gold for gold or dollars for dollars.
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Bay' al-Dayn (بيع الدين) - Sale of debt: trading a receivable for cash, permitted only at face value by most scholars. The sale of a debt or receivable to a third party. Because a debt is money owed, selling it for a different amount of money is an exchange of money for money with a difference, which most scholars treat as riba.
- Sale of debt: trading a receivable for cash, permitted only at face value by most scholars.
- Category: Prohibitions
- Related: Dayn, Hawalah, Sukuk, Riba, Riba al-Nasi'ah, Riba al-Fadl
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Source: HalalWallet (halalwallet.ca)
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This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-01
Editorial Team, HalalWallet
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