Loan of Consumption
"Is interest mandatory in a Karz agreement?"
Quick Answer
A specific type of loan agreement where the lender transfers ownership of money or fungible goods to the borrower, who is obligated to return the same quantity and quality.
Scope and Legal Distinctions
A consumption loan transfers money or fungible goods with an obligation to return an equivalent amount or quantity. It is different from custody or lending a specific item for use.
What to Check in Practice
Record the amount, disbursement, interest if applicable, maturity and repayment evidence; identify any security or guarantor separately.
Sources & Authorities
Statutory framework and official guidance for this definition.
Need Expert Legal Guidance?
Our experienced attorneys can help you navigate loan of consumption under Turkish law.
Schedule a Consultation