Reducing a Debt for Early Settlement ("Reduce and Hasten") مسألة ضع وتعجل

Questioner: O Shaykh, on the issue of "reduce and hasten" (da' wa ta'ajjal) in the same form of the lease ending in ownership: if I wanted to hasten paying off the amount, and they take off some of the money so that I pay it early?

[This follows on from The Lease Ending in Ownership. It was asked together with questions on the hadith "The best remembrance…" and on tadlis al-taswiyah.]

This is another issue. The issue of "reduce and hasten" is disputed among the scholars. The Malikis (may Allah have mercy on them) do not allow this form; on the issue of "reduce and hasten," the Malikis prohibit this form and consider it riba. That is: you lent a man a hundred thousand riyals, or extended him a debt of a hundred thousand riyals; then you needed the money, so you say, "Give me some of the money and I will waive some for you; give me ninety thousand and I will waive ten." The Malikis forbid this form, saying: it is riba — money sold for money, one of them in cash and the other a loan, and it also involves deferment (nasi'ah).

As for the majority, they permit this form. There is a weak hadith about it, "Reduce and hasten," but it is defective and weak. The view of permissibility is more correct, because there is benefit in this for the creditor and the debtor, and there is no taint of riba in it, because the original transaction was concluded by way of a loan. Evidence of this is that Ibn 'Umar, for example — in the reverse of this form, of course — used to borrow ten and repay more, but without a condition. Had it been with a condition, what would the ruling be? It would have been riba. But Ibn 'Umar would add, in line with his saying ﷺ: "Whoever does you a kindness, reciprocate it," and "Whoever does not thank Allah does not thank people."

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