Loan... Cases and Ruling
All praise to Allah lord of the realms, and his blessing and
peace be upon His prophet Mohamed and all his family and
companions:
This my fellow Muslim is a
message dedicated to demonstrate the rules of Loan, collected from
books of different scholars may Allah have mercy on them, for the
sake of Allah and the reward of hereafter. May Allah grant us
success, on Him we rely and to Him we return.
Definition of
a Loan
Linguistic meaning: It is a
Deduction (Kate'), as the lender deducts from his capital to give
it to the borrower.
Religious legislative meaning:
Giving a sum of Money to whomever benefits from it, then return its
equivalent.
The
Permissible Form of Loan
Loan is permissible according
to Sunnah and Consensus of Muslim legal scholars:
Prophet Mohamed Peace and
blessing of Allah be upon him borrowed a virgin She-camel and
returned full grown male camel. He said: the best amongst people
whom returns a loan in the best form. [Reported by
Al-Bukhari]
The Virtues of
lending:
Lending people is a pious act
the servant does to please Allah exalted be his ranks, as it shows
kindness and mercy to people, thus facilitating their matters and
move the burdens off their chest. Prophet Mohamed peace said:- "He
who alleviates the suffering of a brother out of the sufferings of
the world, Allah would alleviate his suffering from the sufferings
of the Day of Resurrection, and he who finds relief for one who is
hard pressed, Allah would make things easy for him in the
Hereafter, and he who conceals (the faults) of a Muslim, Allah
would conceal his faults in the world and in the Hereafter. Allah
is at the back of a servant so long as the servant is at the back
of his brother." [Reported by Muslim]
He also said: "Whenever a
Muslim lends another Muslim a loan twice, it is considered as a
single alms (charity)" [Reported by Ibn Majjah and classified as
Hasan (Good) By Al-Albani]
He also said: "Whoever endows
a small amount of milk or silver, or even leads through an Alley
(side road) his reward equals the reward of freeing a slave."
[Reported and declared Hasan (good) by Al-Tirmizi]
He also said: "Every loan is
an Alms(Sadaqa)." [Classed as Hasan (Good) by Al-Albani]
Stipulating a
due date
{إِذَا
تَدَايَنتُم بِدَيْنٍ إِلَى أَجَلٍ مُّسَمًّى
فَاكْتُبُوهُ}[البقرة:282]
Transliteration:
Yā 'Ayyuhā Al-Ladhīna 'Āmanū
'Idhā Tadāyantum Bidaynin 'Ilá 'Ajalin Musammáan
Fāktubūhu
Prophet Mohamed said: "Muslims
are liable to their stipulations." [Reported by Al-Tirmizi and
Authenticated By Al-Albani]
Conditions of
a Permissible Loan:
1-The creditor deemed of eligible to
grant a loan. i.e. An orphan Guardian is not Allowed to grant loans
from the orphans capital.
2-The amount of loan granted must be
fixed before granting it, i.e. amount of money.
3-Awareness of the characteristics of
the borrowed property e.g. age of the animal at the time of
borrowing, to return it in the same state he borrowed.
What is
accepted as a Loan?
It's accepted if it's the
following:
1-Gold, Silver, and paper
currency.
2-Any property subject to selling like
clothes and animals. Measured, weighed, and counted items. Things
that is not variable in size like eggs. Paper the same size and
measured fabrics. Bread in mass and number for the peoples
need.
Every Loan
leads to benefit is Usury
The notion behind giving a
loan is kindness to people to support them in their living thus
making their lives easier, not used as an exploitation tool. That
is why a debtor must return to the creditor the thing he borrowed
or something like it, thus acting accordingly with the Fiqhi Rule
stating that "Every loan leads to a benefit is Usury".
Impermissibility is restricted with the benefit stipulated or
agreed on. Thus, if the increase not stipulated or agreed on, the
increase is permissible. Supported by
a Hadith narrated by Aby Rafe' saying: "The prophet borrowed
a virgin she-camel and when the charity camels arrived he asked me
to return to the lender a virgin She-camel I said " I didn't find
any except a full grown male camel( completed six years and in his
seventh)". The Prophet said "Give it to him, the most favored of
people whom returns a loan in the best form". [Reported by
Al-Tirmizi and Ibn Majjah, Authenticated By Al-Albani]
Narrated by Jabir Ibn Abdullah May Allah be pleased with him: That
prophet Mohamed once was debited to me, so he returned the loan and
gave an increment. [Reported by Muslim]
Kinds of an
Impermissible Loan that leads to a benefit
1-
Lending two thousand or three
thousand in order the debtor help him sell his house, returns one
more valuable or higher in price.
2-
Giving loan stipulating that
the debtor finds him a job, his father, or anyone of his
relatives.
3-
Giving a loan in return of a
favor. e.g. Real Estate rental and its kind.
With other similar cases in
the practice of people, Prophet Mohamed -peace and blessing be upon
him-: Prohibited to give a loan for a sale. [Reported by Al-Nasa'i
and Al-Albani comment it's Good and Authentic]
It is Narrated that Ibn Ka'b,
Ibn Mas'ud and Ibn Abbas May Allah be pleased with them all,
Prohibited any Loan that leads to benefit, because it's a contract
of mercy and pious leading the loan to be deviated from its main
context. It is a duty upon every Muslim to acknowledge and beware
of this point, purifying his intention in the issue of loan and
other pious acts. The nourishment sought from Loan giving isn't
materialistic rather it's the moral benefit that is sought,
pleasing Allah Almighty through lifting the burden of the needy and
redeeming the same capital lent. If this is the intention, then
Allah will nourish his money with blessings.
Striving to
return or pay the Debt before death
Some people take Public rights
lightly, especially when it comes to religious duties, which is bad
trait leading people to refrain from giving loans and making
people's lives easier. Therefore, it is a duty upon the debtor to
return the debt without stalling or any delay whenever he is
financially capable. Allah almighty said: "Is the reward for good
[anything] but good?" [Al-Rahman 55:60]
Transliteration:
Hal Jazā'u Al-'Iĥsāni 'Illā
Al-'Iĥsānu
He also said: "Indeed, Allah
commands you to render trusts to whom they are due" [Al-Nisa'
4:58]
Transliteration:
'Inna Allāha Ya'murukum 'An
Tu'uaddū Al-'Amānāti 'Ilá 'Ahlihā
Prophet Mohamed -peace and
blessings be upon him- said: "Delaying of the rich is ingratitude…"
[Reported by Al-Bukhari and Muslim]
Other evidence
of the aforementioned:
Prophet Mohamed -peace and
blessings be upon him- saying: "Whoever takes the money of the
people with the intention of repaying it, Allah will repay it on
his behalf, and whoever takes it in order to damage it, then Allah
will waste him." [Reported by Al-Bukhari]
He also said: "Whoever dies
innocent of three matters; arrogance, plunder and debt enter
paradise." [Reported by Ibn Majjah and Authenticated by
Al-Albani]
He also said: "The soul of a
believer is bound to his debt until he returns it." [Reported by
Al-Tirmizi and Authenticated by Al-Albani]
The obligation
of respite towards whose experiencing hardship in debt
Allah almighty said: "And if
someone is in hardship, then [let there be] postponement until [a
time of] ease. But if you give [from your right as] charity, then
it is better for you, if you only knew" [Al-Baqara
2:280]
Transliteration:Wa 'In Kāna Dhū
`Usratin Fanažiratun 'Ilá Maysaratin Wa 'An Taşaddaqū Khayrun Lakum
'In Kuntum Ta`lamūna
Al-Sa'dy
(Qur'an interpreter) said: The verse implements that if the
debtor is finding trouble in paying the debt, the creditor must be
patient and give him a chance until he is in a state of financial
ease. It is obligatory upon the debtor to fulfill the debt whenever
he got a chance to do so. If the creditor excuses him from the debt
then it is better. (Tafseer
Al-Sa'dy)
It is narrated by Aby Qatada
May Allah be pleased with him: He was searching for a man debited
to him, he was hiding from him. One day he found him, the man in
debt told him "I am in a financial hardship" he replied to him
"A'Allah" (do you swear in the name of Allah)" the man answered him
Allah (yes I do). He replied saying: I heard prophet Mohamed -peace
and blessings be upon him- say: "He who likes to be alleviated from
the sufferings of the Day of Resurrection will relieve a debtor or
excuses him from debt." [Reported by Muslim]
Narrated by Buraydah: I heard
the prophet -peace and blessings be upon him- say: "Whomever
respites a debtor in a hardship, is rewarded with every day he
respites him an Alms(Sadaqa)", and I heard him again saying "
whomever respites a debtor, is rewarded with every day he respites
him double the day reward as an Alms (Sadaqa)". Then, I said O
Messenger of Allah I heard you say "Whomever respites a debtor in a
hardship, is rewarded with every day he respites him an
Alms(Sadaqa)" and then you said "Whomever respites a debtor, is
rewarded with every day he respites him double the day reward as an
Alms (Sadaqa)". He replied saying: " Every single day before the
debt is due date an Alms(Sadaqa), when the debt is due and he
respites the debtor then he is rewarded with every day double the
day of Alms (Sadaqa). [Reported by Al-Monzery and authenticated By
Al-Albani]
Narrated by Aby Huraira May
Allah be pleased with him that prophet Mohamed -peace and blessings
be upon him- said: whoever respites a debtor in hardship or excuses
him from debt, Allah will shade him in the Day of Resurrection
under the shade of his thrown, where there will be no shade except
his shade. [Reported and Authenticated By Al-Tirmizi]
Also Narrated by Aby Huraira
May Allah be pleased with him that prophet Mohamed -peace and
blessings be upon him- say: There was a man who lent people, said
to his servant, "If you find a debtor in hardship over look him for
we seek Allah's Pardon". When the man died and met Allah, He
Pardoned him. [Reported by Al-Bukhari]
Imprisonment
of whom with Capability to pay the debt
If the debtor refrains from
paying the debt while being capable of it would be punished with
imprisonment according to what prophet Mohamed -peace and blessings
be upon him- said: "My rule Applies to the Capable (who has money
but does not pay the debt), dishonoring and punishing him is
permissible." [Classified as Good by Al-Albani]
Dear Kind
Sheikh: Fatwa on taking a loan from a Haram (Forbidden source)
source
Question:
Is it permissible to take a
loan from a person known that his income's source illegitimate or
has forbidden monetary transactions?
Answer:
The kind
sheikh Ibn Baz may Allah have mercy on him answered with the
following. It is no
allowed to take a loan from a person with such reputation, or deal
with him financially knowing that his financial transactions are
Haram (forbidden) and known for his usury practices or any of its
like. So it is not permissible to deal or borrow from him, your
duty is to refrain from doing so and distance yourself from him.
But If his financial practices are mixed meaning having Haram
(forbidden) and Halal (permissible) sources of income, its
permissible to do so, while leaving it, is better. According to
what prophet Mohamed -peace and blessings be upon him- said: "leave
the suspicious matter to what does not make you suspicious."
[Reported by Al-Tirmizi and authenticated by Al-Albani]
He also said: "He who is wary of vague matters has guarded his
religion and honor." [Reported by Al-Bukhari and Muslim]
He also said: "You know a sin from the feeling of discomfort in
yourself, and you would not like people to know of." [Reported by
Muslim]
So a believer stays away from doubtful matters. If you knew the
nature of his transactions being forbidden and his trade is based
on Haram this person isn't eligible to have any kind of transaction
or loan with. (Islamic Fatwa
2:416)
O Allaah, make what is lawful
enough for me, as opposed to what is unlawful, and spare me by Your
grace, of need of others.'
O Allaah, I take refuge in You
from anxiety and sorrow, weakness and laziness, miserliness and
cowardice, the burden of debts and from being over powered by
men.'
O Allah relief the anxiety of
those having worries of the Muslims, alleviate the hardship of
those suffer, perform debt off the debtors and heal the ill amongst
us and the Muslims.
Lastly, we praise Allah Lord
of the realms.
Translated by
Wathakker.net website
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