{Who is it that would loan Allah a goodly loan so He may multiply it for him many times over?...} (al-Baqarah 2: 245)
{ مّن ذَا الَّذِي يُقْرِضُ اللّهَ قَرْضاً حَسَناً فَيُضَاعِفَهُ لَهُ أَضْعَافاً كَثِيرَةً.}
Book of Zakat
Chapter on Loans
The Book of Purification
The Book of Prayer
Importance of Prayer & Ruling of its Abandonment
Facing the Qiblah & Intention in the Prayer
Etiquettes of Walking to Prayer and its Description
Description of Prayer Continued
Description of Prayer Continued
Description of Prayer Continued
Pillars and Mandatory Acts of Prayer
Two Prostrations of Forgetfulness
Supererogatory (Voluntary) Prayers
Supererogatory (Voluntary) Prayers Continued
Times of Prohibition of (Supererogatory) Prayer
Congregational Prayers & Latecomers
Jumu'ah (Congregational Friday) Prayer
The Book of Funerals
The Book of Fasting
The Book of Hajj and 'Umrah
Book of Zakat
The Book of Selling and Commercial Transactions
Introduction & Commercial and Selling
Selling of Primary & Secondary Commodities
Cancellation Options in Transactions
Cancellation Options Continued
Debt Transference & Guarantor-ship
Mortgaging & Security Deposits
Partnership & Companies Continued
Reviving Barren Lands & Per-Job Wage
Lost and Found Property & Foundlings
Prize Money & Deposits for Safekeeping
The Book of Bequests
The Book of Inheritance
The Book of Marriage
The Book of Divorce
The Book of Sadaq
The Book of Dhihar
The Book of Lian
The Book of Foods
Book of Fatal and Non-Fatal Assault
The Book of Indemnities
The Book of Hudood
The Book of Jihad
The Book of the Judiciary
The Book of Testimonies
Appendix
Glossary
Chapter on Loans (Qarḍ) and Other Transactions 845
845. Ruling of Loaning
There is a great reward in lending money to those who need it. Allah said:
This verse refers to all forms of spending in the cause of Allah, including lending money. It also likens those acts of spending to giving a loan to Allah, indicating the great virtue of giving loans. Also, the Messenger of Allah (SA) said:
“Whenever a Muslim gives a fellow Muslim a loan twice, it will be like giving charity once.” (Ma – from Ibn Mas‘ood; al-Mundhiri and al-Albâni: S)
مَا مِن مُسْلِمٍ يُقْرِضُ مُسْلِمًا قَرْضًا مَرَّتَيْنِ إلا كان كَصَدَقَتِهَا مَرَّةً.
The great reward for lending money is because:
· There is some risk entailed in this act of kindness.
· There are people who only borrow in times of hardship but will not accept charity. Relieving the distress of a believer is greatly appreciated by Allah, Who will, in turn, relieve the distress of the lender.
As with giving charity, lending to a non-believer is also praiseworthy.
بَابُ القَرْضِ وَغَيْرِهِ
Abu Râfi‘ reported that Allah’s Messenger (SA) took from a man, as a loan, a young camel. Then camels of ṣadaqah were brought to him. He ordered Abu Râfi‘ to return to that person the young camel [as a return of the loan]. Abu Râfi‘ returned to the 846
عَنْ أَبِيْ رَافِعٍ ، أَنَّ رَسُوْلَ اللهِ اسْتَلَفَ مِنْ رَجُلٍ بَكْرًا، فَقَدِمَتْ عَلَيْهِ إِبِلُ الصَّدَقَةِ، فَأَمَرَ أَبَا رَافِعٍ أَنْ يَقْضِيَ الرَّجُلَ بَكْرَهُ، فَرَجَعَ إِلَيْهِ أَبُوْ رَافِعٍ، فَقَالَ: لَمْ أَجِدْ فِيْهَا، إِلاَّ خِيَارًا رَبَاعِيًا. فَقَالَ: "أَعْطُوْهُ إِيَّاهُ، فَإِنَّ
The Ruling of Borrowing
Borrowing is permissible because the Messenger of Allah (SA) borrowed money, as reported in the hadith from Abu Râfi‘ mentioned here. It becomes disliked if there is no valid need, and it would be haram for one who has no necessity, and borrows money to squander it and not return it. The Messenger of Allah (SA) said:
“If someone takes people’s money intending to return it, Allah will pay it off for him or her (enable the person to pay back the loan); but if someone takes another person’s money intending to squander it, Allah will destroy that person.” (B – from Abu Hurayrah)
من أَخَذَ أَمْوَالَ الناس يُرِيدُ أَدَاءَهَا أَدَّى الله عنه وَمَنْ أَخَذَ يُرِيدُ إِتْلَافَهَا أَتْلَفَهُ الله.
846. This hadith supports the position of (A) + (+M, +S) who allow loans of not only mithliyât (fungibles such as a certain measure of wheat), but also qeemiyât (non-fungibles, such as a camel, whose exact substitution may not be easy to have, though its valuation is easy). The condition, according to (-M, -S), is that the item loaned is one that can be traded in a salam transaction, but according to (A), anything that can be sold can be loaned except human beings. Loan of usufructs:
(A) + (+H): usufructs cannot be loaned.
(-M, -S, -t): usufructs can be loaned.
Messenger (SA) and said, “I only found better camels over six years old.” He replied, “Give him one, for the best people are those best in paying off debts.” 847
خَيْرَ النَّاسِ أَحْسَنُهُمْ قَضَاءً."
Whoever borrows something should return its like. 848
It is permissible, however, to:
• Return what is better than it.
• Borrow in installments and pay back all at once.
[This is permissible] as long as it was not [stipulated as] a condition [in the contract]. 849
وَمَنِ اقْتَرَضَ شَيْئًا، فَعَلَيْهِ رَدُّ مِثْلِهِ.
وَيَجُوْزُ أَنْ
يَرُدَّ خَيْرًا مِنْهُ
وَأَنْ يَقْتَرِضَ تَفَارِيْقَ وَيَرُدَّ جُمْلَةً
إِذَا لَمْ يَكُنْ بِشَرْطٍ.
847. (M).
848. The like here (mithl) is the exact like, which is possible with mithliyât (fungibles such as things measured by volume or weight) which can be (fairly) substituted for each other. For qeemiyât (non-fungibles, such as a piece of furniture or an animal and things measured by count or cubits), the value of the borrowed item is what should be returned. (For things whose value fluctuates widely, like jewelry, valuation is done on the day of payment; for others, valuation is done on the day of borrowing.) In another opinion, one may return the like (even if not exact), as in the hadith of the camel here above.
849. Because to stipulate such conditions would be to the advantage of the lender. This applies to returning what is better. In other words, the borrower may pay back more than was borrowed only if this increase was not stipulated in the contract. As for returning all the debt at once when it was paid to the borrower in installments, it seems that it is permissible, even if it was demanded by the lender, as Ibn Qudâmah himself indicated in his book al-Mughni.
If the lender defers the due date, the debt is not in fact deferred. 850
وَإِنْ أَجَّلَهُ، لَمْ يَتَأَجَّلْ.
The reason it is lawful is that the creditor does have the right to claim all the money owed to him or her, particularly if the creditor did not set a deferred date for payment.
850. Because it is set from the time of borrowing, and deferring the due date is an act of kindness on the part of the lender. Thus, any deferment does not become incumbent upon the lender, which means the lender can still ask for his or her money immediately. (A) + (+H, +S) (M, +al-Layth, +t): It becomes deferred because it is a promise that must be honored, and Muslims abide by their conditions. Also, Allah said:
{O you who have believed, when you contract a debt for a specified term, write it down…} (al-Baqarah 2: 282)
{ يَا أَيُّهَا الَّذِينَ آمَنُواْ إِذَا تَدَايَنتُم بِدَيْنٍ إِلَى أَجَلٍ مُّسَمًّى فَاكْتُبُوه.}
851. Al-Bayhaqi reported, in his as-Sunan al-Kubrâ’, from Ubayy ibn Ka‘b, Ibn Mas‘ood, and Ibn ‘Abbâs (RAHUM), that they forbade every loan that results in benefit [for the lender]. [al-Albâni: S] This concept is considered a fiqh maxim.
Any loan that results in a benefit [for the lender] is usurious.
كٌلُّ قَرْضٍ جَرَّ نَفْعًا فَهُوَ رِبَا.
852. (B, M) reported from ‘Â’ishah that the Messenger of Allah (SA) borrowed barley from a Jewish man and left him his shield as security (rahn). The Prophet (SA) died while the shield was still in the possession of the Jewish man.
guarantor of appearance (kafeel) 853 is stipulated [for the assurance of the lender].
وَلاَ يَجُوْزُ دَفْعُ الزَّكَاةِ إِلاَّ بِنِيَّةٍ، إِلاَّ أَنْ يَأْخُذَهَا الإِمَامُ مِنْهُ قَهْرًا.
The lender may not accept a gift from the debtor, unless it had been their habit to exchange gifts before the loan.
وَلاَ تُقْبَلُ هَدِيَّةُ الْمُقْتَرِضِ، إِلاَّ أَنْ يَكُوْنَ بَيْنَهُمَا عَادَةً بِهَا، قَبْلَ الْقَرْضِ.
853.
The kafeel does not guarantee the actual payment, as the ḍâmin (guarantor of payment) does. The kafeel only guarantees that the debtor appears/shows up at the time of payment. (This will be further discussed in the chapter of guarantor-ship.) Those conditions are allowed, since they only guarantee for the lender the return of his or her capital. One of the forms of invalid conditions is to combine a loan and a sale into a single transaction, because the lender may accrue a benefit from the sale that would have not otherwise been possible to secure (without lending). The Messenger of Allah (SA) said:
“It is not permissible to combine a loan and a sale, or two conditions in one sale, or to make a profit from a commodity that is not in your liability. And do not sell what you do not possess.” (D, T – from ‘Abdullâh ibn ‘Amr; T: S)
لَا يَحِلُّ سَلَفٌ وَبَيْعٌ ولا شَرْطَانِ في بَيْعٍ ولا رِبْحُ ما لم تَضْمَنْ ولا بَيْعُ ما ليس عِنْدَكَ.
Chapter on Loans
( Page : no 76)