What is the ruling if the borrower uses the remaining half of the sound Dinar to purchase goods?
Chapter on Loan (Qard)
Al-Mughni
Book of Sales
Primary text
It is permissible for the borrower to use the remaining half of the sound Dinar to purchase goods, provided this action is not conditional upon the initial repayment. If the transaction is conditional, such as the lender stating, "I will repay you with a sound coin on the condition that you give me a shirt for the remaining half," this is not permissible. This invalidity arises because the lender only handed over the sound coin to receive the excess value (the difference between the sound coin and the broken coin) corresponding to the half being repaid as a loan repayment.
Supporting text
If no such condition exists, the transaction is valid.