Reciprocal loans

Abstract EN

The matter of reciprocal loans , whereby a loan is tied to an equivalent ( reciprocal ) loan in terms of amount and period , raises many questions particularly from the shariah point of view .

This necessiates looking into the existing contracts , whether by individuals or corporations, pertaing mainly to whether they come under “ a loan that entails a benefit “ or “ tied-in loans “ .

Legitimizing reciprocal loans based on promise rather than being part of contract , may not constitutes a shariah accepted solution , according to some scholars