The World Federation One Stop Fiqh

Ruling 2302

Giving interest (ribā), just like taking interest, is unlawful, but the loan itself is valid. Someone who takes a usurious loan becomes the owner of it but the lender does not become the owner of the extra that he takes, and any use he makes of it is unlawful. Furthermore, if the lender purchases something with the same item [i.e. the extra item he received in the usurious loan], he does not become the owner of it. In the event that had he not made an agreement of usury, the borrower would have consented for the lender to use the money, then his use of it is permitted (jāʾiz). Similarly, if due to not knowing the ruling (masʾalah) the lender takes interest and after finding out the ruling he repents, then what he took when he did not know the ruling is lawful (ḥalāl) for him.