LessonsMurabahah Funds, Sale of Debt (بيع الدين) and Mixed FundsQuiz

A monetary debt is effectively money owed. If a debt of 100 is sold for 90 in the same currency, the transaction becomes an exchange of unequal amounts of money.

The traditional jurists and overwhelming majority of contemporary scholars described therefore do not allow sale of monetary debt at a discount.

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Why Discounted Debt Sale Creates a Riba Problem

Murabahah Funds, Sale of Debt (بيع الدين) and Mixed Funds

A monetary debt is effectively money owed. If a debt of 100 is sold for 90 in the same currency, the transaction becomes an exchange of unequal amounts of money.

The traditional jurists and overwhelming majority of contemporary scholars described therefore do not allow sale of monetary debt at a discount.