Is there an option (khiyar) in a loan contract (qard)?
Chapter on Loan (Qard)
Al-Mughni
Book of Sales
Primary text
There is no option established in a loan contract because the lender entered the contract with full knowledge that the benefit belongs to the borrower, which resembles a gift. The borrower may return the item whenever he wishes, which negates the need to establish an option for him. Ownership in a loan is established upon taking possession (qabd).
Supporting text
The Shafi'i school holds that the lender has the right to revoke the loan if the identical item exists, drawing an analogy to wrongfully seized property (maghsub) or a borrowed item ('ariyah), as one has the right to take back what one can demand the like of when it is present.