Ruling 2307 — Loan (Qarḍ)

If a person is owed by someone a commodity that is neither weighed nor measured, he can sell it to the borrower or someone else for a lower price and take the sum immediately. Therefore, in present times, a lender can take a cheque or promissory note from the borrower and sell it to a bank or another person for less than what he is owed – which is commonly known as ‘cheque cashing’ – and he can take the sum immediately.