The Creed of Compassion-Islamic Teachings & Answering Doctrinal Misconceptions

Issue No.1938- Giving a loan is one of the very much recommended acts which has been greatly recommended in the Holy Qur’an and in the traditions of the Infallibles (as). The Holy Prophet has been reported to have said that whoever gives a loan to his Muslim brother, his wealth flourishes, and the angels invoke Divine mercy for him [1], and if he is lenient with his debtor, he will swiftly cross the Bridge (al-Ṣiraṭ) [2]. If a Muslim denies his brethren-in-faith a loan, Paradise becomes forbidden for him [3]. There is also a narration which indicates, “The reward for ṣadaqa (alms) is ten times as much as the ṣadaqa itself, and the reward for loan is eighteen times as much as the loan.

Issue No.1939- The loan agreement can be done either verbally or non-verbally. Hence, if a person gives something to another with the intention of loaning, and he takes it with the intention of borrowing, it will be in order.

Issue No.1941- If a period is fixed for the repayment of the debt in its contract, the creditor cannot claim repayment of the debt before the expiry of that period. However, if no such period was fixed, the creditor can demand the repayment of his debt at any time.

Issue No.1942- If a period is fixed for repayment of the debt in the formal contract of the debt, and the debtor wishes to pay his debt before the termination of time, the creditor does not have to accept it. In case however, specifying the time has been only to help the debtor and he pays his debt before the termination of time, the creditor should accept it.

Issue No.1943- If the creditor demands his debt at the time he is entitled to, and the debtor is in a position to pay it he should pay it immediately, and if he delays the payment, he has committed a sin. However, if the debtor does not possess anything other than the house he resides in, the household effects, and other essential objects, the creditor should wait and he cannot compel him to sell the things he needs. However, the debtor should endeavour to repay his debt through trade and work or other lawful ways to earn some money to pay his debt.

Issue No.1944- If a debtor has no access to his creditor, and does not have any hope in finding him, the obligatory precaution is that he should pay the amount he owes, with the permission of the Mujtahid or his representative, to poor people, whether they are sayyid or non-sayyid.

Issue No.1945- If the estate of a dead person does not exceed the obligatory expenses of his shroud, burial and the payment of his debt, his estate should be spent for these purposes and his heir will not inherit anything.

Issue No.1946- If a person takes a sum of current gold or silver money or other than that as a loan, and then its price drops or increases, he must give the same quantity which he had taken, whether its price has dropped or increased.

Issue No.1947- If the same property taken on loan is available, and the time to return it has come, and its owner demands the same object which he had lent, it will not be necessary to return him the same object, though it is recommended to do so.

Issue No.1948- If a person who offers a loan makes a condition that he will take back more than what he gives, it will be usury and haram, irrespective of whether it is a commodity which is purchased and sold by weight, volume, or calculation. Rather, if he stipulates that the debtor should, apart from the repayment, do some work for him, or repay the loan along with a quantity of another commodity, for example, if he lays down the condition that the debtor should return the money taken on loan along with a quantity of another commodity (e.g., wheat) or if the creditor gives as loan a quantity of unmanufactured gold, and imposes the condition that the debtor should return him the same quantity but of manufactured gold, all these are usury and haram. However, if no condition is imposed by the creditor and the debtor himself decides to repay something more than what he borrowed, there is no problem in it, and it is rather recommended to do so.

Issue No.1949- Giving a loan for interest is haram just like taking a loan along with interest, and one who has taken a loan with interest does not become its owner, and it is not permissible to make use of it. However, if the situation is such that the loaner is consent with the borrower making use of his money even though he would not pay interest, the person taking the loan may use it.

Issue No.1950- If a person takes some wheat or any other similar seeds as an interest bearing loan, and cultivates with it, the loaner becomes the owner of the harvest, not the loan taker.