Validity of stipulating a loan period immediately followed by a *Mudarabah* agreement concerning the same sum?
General Chapter
Al-Mughni
Book of Partnership
Primary text
It is not valid to stipulate a loan for a month, after which the sum becomes subject to a *Mudarabah*. This is because the initial loan establishes a debt upon the borrower, and it is impermissible to engage in *Mudarabah* with a debt one owes.
Supporting text
It is permissible if the stipulation is to trade with the sum for a month, and subsequently, the sum is taken back as a loan.