A type of riba (usury) that was commonplace at pre-Islamic times (the period of ignorance, especially in the Arabian peninsula). Riba Jahiliyyah (ربا الجاهلية) constituted a penalty imposed on delinquent debt repayment or default, where lenders then used to double the amount of debt outstanding if payment was not made on time.
Riba in the Jahiliyyah (time of ignorance) was that a man would have a debt/ dayn or right/ haqq on another for a specified period of time (ajal). When repayment was due (at the end of that period), the former (creditor) would address the latter (debtor) saying, ‘Will you pay it off or increase it (ataqdi am turbi- أتقضي أم تربي)?’ If the debtor paid, the he would owe the creditor nothing . If not, the amount of debt was doubled- or whatever- and the term of debt was extended.” (Muwatta of Imam Malik: 1180).
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