Riba al-Fadl
ربا الفضل
Pronunciation: REE-bah al-FADL
Riba of excess: unequal exchange of the same ribawi commodity, such as gold for gold or dollars for dollars.
Definition
The riba that arises when the same type of ribawi commodity (gold, silver, wheat, barley, dates, salt, and by extension modern currencies) is exchanged in unequal amounts, even on the spot. The hadith of the six commodities requires like-for-like exchanges to be equal and immediate.
Riba al-fadl matters for currency exchange, gold and silver trading, and the analysis of money-for-money transactions such as discounting a debt or a bank paying more than par. It is often called the riba of sales, as opposed to riba al-nasi'ah, the riba of debts.
Related Terms
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.
Sarfصرف
Currency exchange: trading money for money, which must be settled on the spot to avoid riba.
Bay' al-Daynبيع الدين
Sale of debt: trading a receivable for cash, permitted only at face value by most scholars.
Ghararغرر
Excessive uncertainty or ambiguity in a contract - one of the three major prohibitions in Islamic finance.
Haramحرام
Prohibited under Islamic law - in finance, includes interest-based products and investments in prohibited industries.
Compare Related Products
See how Riba al-Fadl is used in real Shariah-compliant financial products available in Canada
Stay Updated
Get halal finance updates, new provider alerts, and expert insights
No spam ever. Unsubscribe in one click.
Riba al-Fadl (ربا الفضل) - Riba of excess: unequal exchange of the same ribawi commodity, such as gold for gold or dollars for dollars. The riba that arises when the same type of ribawi commodity (gold, silver, wheat, barley, dates, salt, and by extension modern currencies) is exchanged in unequal amounts, even on the spot. The hadith of the six commodities requires like-for-like exchanges to be equal and immediate.
- Riba of excess: unequal exchange of the same ribawi commodity, such as gold for gold or dollars for dollars.
- Category: Prohibitions
- Related: Riba, Riba al-Nasi'ah, Sarf, Bay' al-Dayn, Gharar, Haram
- Compare related Shariah-compliant products on HalalWallet
Source: HalalWallet (halalwallet.ca)
How to cite this page
Preferred format (HTML):
For time-sensitive claims (rates, fees, province availability), please verify directly with the provider's official documentation and note the retrieval date.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-01
Editorial Team, HalalWallet
Independent halal finance research
Reviewed quarterly and updated for major content changes.