Muwatta 1990

Malik says it reached him that a man came to Abdullah ibn Umar and said: Abu Abd al-Rahman, I lent a man a loan, and I stipulated that he return something better than what I lent him. Abdullah ibn Umar said: that is riba. He said: how do you advise me, Abu Abd al-Rahman? Abdullah said: loans are in three ways. A loan you give to seek God's face; then you have God's face. A loan you give to seek your companion's good; then you have your companion's good. A loan you give to take something bad in exchange for something good; that is riba. He said: how do you advise me? He said: I think you should tear up the document. If he gives you the same as you lent him, accept it. If he gives you less than you lent him and you take it, you are rewarded. If he gives you better than what you lent him, with a willing heart, that is a thankfulness he shows you, and you have the reward for what you granted him. ¹

Belongs to the Muwatta, Book of Sales. Source: the Muwatta. Mentions Malik ibn Anas, Abdullah ibn Umar ibn al-Khattab. Built on in the chapters on riba and advance purchase (salaf).