Is it permissible to lend a debtor the means to acquire an item (like grain) to repay a debt owed in kind?
Chapter on Loan (Qard)
Al-Mughni
Book of Sales
Primary text
If a person owes another grain, and the creditor lends him money specifically to purchase grain to repay the original debt, this transaction is not prohibited. This is because the benefit the creditor derives is merely the recovery of what was already due to him.