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If the borrower does not pay interest on the loan and repays the full amount as agreed, without any hidden charges or alterations to the repayment terms, the situation changes. For example, if a bank offers cash back as a part of a financing package but the borrower repays the exact amount borrowed, this “cash back” is viewed as an incentive and not a part of the lending agreement that raises the overall repayment.
For a Muslim borrower, as long as interest is not involved and the borrower repays the loan without any increase in the amount owed, the cash-back reward is typically not a concern. This type of “cash back” is viewed as a separate incentive and does not violate Islamic principles related to riba. It can even be seen as similar to retail rewards or customer incentives that do not affect the underlying loan agreement.
