Does a debtor have to repay his creditor in full based on the rate of inflation? 

Q. I had given loans to family and friends over the years. They are paying me back now. Can I ask them to pay me in accordance to the rate inflation over the years?

A. A creditor cannot ask his debtor to pay him back his loan in accordance to the rate of inflation over the previous years as the excess amount will be Haraam and tantamount to Riba (interest).

The exact amount of money given as a loan by a creditor to his debtor must be paid back in the same amount. The rate of inflation over the years will not effect the payment of the loan in any way. (Shaami 5/162)

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa