Borrowing and Repayment Provisions in Islam

Humans are social creatures. Since the beginning of civilization, people have been living in society. And an undeniable reality of this society is that no human alone is always able to fulfill all his needs. That is why people help each other through various means or transactions.
One such major way is debt. Borrowing and repayment is a very important issue in the course of human life. Islam has provided people with excellent methods and guidance in this regard. As Almighty Allah has allowed mankind to take loans, He has also given strict instructions regarding the repayment of those loans on time.
Since we are involved in debt in every turn of life, it is necessary for us to have a clear understanding of the Islamic Shari’ah guidelines and rules regarding debt. Moreover, due to lack of understanding of the severity of debt, we take credit lightly. Which is a threat to the afterlife. We will try to discuss something about this in the discussion article, Inshallah.

Identity of Loan: The Arabic equivalent of Debt is قَرْض, which is known as ‘Karya’ in Bengali. Its Bengali synonyms are Dena, Dhar, Howlat etc. In terms of Shari’at دَفْعُ مَالٍ إِرْفَاقًا لِمَنْ يَنْتَفِعُ بِهِ وَيَرُدُّ بَدَلَهُ, i.e. ‘Loan is the giving of goods to others for cooperation, so that the recipient will benefit from it, then returning the goods or similar to the giver’.[1] In Islamic terms. This is called ‘Karye Hasana’.
If one lends something to someone unconditionally with the intention of getting the pleasure of Allah, it is called ‘Karye Hasana’ or good loan. It benefits people in this world and the hereafter and mutual love increases and social unity is strengthened. The importance and significance of Karya Hasana in the socio-economic system is immense.
Almighty Allah says, مَنْ ذَا الَّذِي يُقْرِضُ اللهَ قَرْضًا حَسَنًا فَيُضَاعِفَهُ لَهُ أَضْعَافًا كَثِيرَةً وَاللهُ يَقْبِضُ وَيَبْسُطُ وَإِلَيْهِ تُرْجَعُونَ Will give a good loan, then he will give him many times more in return? Indeed, it is Allah who narrows and widens the sustenance. And to Him you will return’ (Baqarah 2/245). Elsewhere he said, وَأَقْرَضُوا اللهَ قَرْضًا حَسَنًا يُضَاعَفُ لَهُمْ وَلَهُمْ أَجْرٌ كَرِيْمٌ ‘Surely the charitable men and charitable women and those who give good loans to Allah, will be given many times more.

And for them is an honorable reward’ (Hadid 57/18). Here lending to Allah means donating in the way of Allah and giving duty to the servant of Allah. Because it is in the hadeeth Qudsi that the Messenger of Allah (PBUH) said, Allah says, اسْتَقْرَضْتُ عَبْدِي فَلَمْ يُقْرِضْنِي ‘I asked my servant for a loan, but he did not give me a loan’. [2] This means that Islam is both moral and economic for people. Showed the way to progress and prosperity.

Provisions of Borrowing: Borrowing is permissible in Islam. Which is proven by the Sunnah of the Prophet (PBUH). Because the Prophet (PBUH) accepted debt, [3] sought refuge with Allah from debt [4] and taught his Ummah to pray for debt relief [5]. Even the Prophet (pbuh) took loans from non-Muslims.
So Islam has permitted Muslims to take loans from others in distress and for various needs. It has also given strict instructions to pay it on time.

Lending is not a business, but cooperation: The purpose of lending in Islam is to help people and be kind to them only for the sake of Allah. But this collaboration is not intended to gain commercial or other benefits. The purpose of lending in a believer’s life is not financial growth; Rather, to gain the pleasure of Allah. Therefore, the borrower is required to pay back what he borrowed or something similar, not in excess.
Any excess taken by the lender will be treated as interest. We engage with interest in various ways through debt in social life. For example, giving a loan to someone for the purpose of employment or any other assistance, or for doing some non-interested service or for getting a shop-house rent, etc., assistance is included in the stage of interest. Similarly land mortgage is also a form of usury. Because if the land is taken in this way, the rest of the crops except the cost of cultivation must be returned to the owner of the land.
Because it is a task. And the benefits of action cannot be enjoyed. Ibn Abbas (R.A.) said, the loan that is received in exchange is interest. [6]

Nowadays, various banks and NGOs are dealing in usurious loans in the name of cooperation in villages and towns, cities and ports and are pushing people towards God’s presence through usurious transactions. Some have again taken up usurious lending as a business, which must be abandoned. Debt can never be business. Because business is done through loans, it is basically a usurious business.

Caution in taking loans: It is necessary to always be careful about taking loans to a believer who is thirsty for paradise. Narrated in Thawban (RA), the Prophet (PBUH) said, مَنْ مَاتَ وَهُوَ بَرِيٌ مِنْ ثَلَاثٍ: الِبْرِ, وَالغُلُولِ, وَالدَّيْنِ دَخَلَ الجَنَّةَ, ‘Whoever dies free from pride, betrayal and debt, he will enter enlightenment’. [7] That is, if he dies in debt, he will not be able to enter Paradise. Moreover, the Messenger of Allah (pbuh) emphasized paying the debts of the deceased before distributing the wealth to his heirs.[8] Because even a martyred person in the cause of Allah will not enter Paradise because of his debts.[9] Until his debts are paid by him. is paid.That is why the Prophet (peace be upon him) said, لَوْ كَانَ لِي مِثْلُ أُحُدٍ ذَهَبًا مَا يَسُرُّنِي أَنْ لاَ يَمُرَّ عَلَيَّ ثَلاَثٌ، وَعِنْدِي مِنْهُ شَيْءٌ إِلَّا شَيْءٌ أُرْصِدُهُ لِدَيْنٍ، ‘If I had as much gold as Mount Ohod, I do not like that three days have passed. Let me have a portion of it after it is done. But except that amount, which I keep to repay the debt’.[10]

People are stigmatized in society because of debt. So one should be careful not to take loans without necessity. On the other hand, taking a loan with the intention of not repaying it amounts to embezzlement, which is definitely abandonment.

Advantages of lending:

In the Holy Qur’an and Sahih Hadith, debt is defined as ‘Karye Hasanah’. And there is infinite virtue in giving hasanah.

(a) Giving a loan is as effective as charity: Giving someone a gift in the hope of doing good or for cooperation is equivalent to giving charity in the way of Allah. Even giving a loan is said to be more prestigious than giving a gift. Narrated by Abu Umama (RA), the Prophet (PBUH) said, دخل رجل الجنة، فرأى مكتوباً على بابها: الصدقةُ بعشرِ أمثالها، والقرضُ بثمانية عشر ‘A person entered Paradise and found a writing on its door saying that charity is ten times as good. is increased and the virtue of lending is increased eighteen times’.[11]

Narrated by Ibn Mas’ud (RA), the Prophet (PBUH) said, كُلُّ قَرْضٍ صَدَقَةٌ ‘Every debt is a debt’. [12] In another narration, he said,مَا مِنْ مُسْلِمٍ يُقْرِضُ مُسْلِمًا قَرْضًا مَرَّتَيْنِ إِلَّا كَانَ كَصَدَقَتِهَا مَرَّةً ‘One Muslim another If a Muslim is given a loan twice, he will receive the virtue of doing charity once’.[13]

(b) Virtue of emancipation of slaves: Virtue of emancipation of slaves can be obtained by giving deeds or giving loans. On the authority of Bara Ibn Azeeb (RA), he said, I heard the Messenger of Allah (PBUH) say,مَنْ مَنَحَ مَنِيحَةَ لَبَنٍ أَوْ وَرِقٍ أَوْ هَدَى زُقَاقًا كَانَ لَهُ مِثْلَ عِتْقِ رَقَبَةٍ ‘A person who donates milk once, or lends money, or guides a lost person to the right path, has the equivalent of freeing a slave.[14]

(c) Good fortune of receiving the prayers of the angels: Whoever lends a loan to a servant of Allah for help, the angels of the sky pray for him. Narrated by Abu Huraira (RA): The Prophet (PBUH) said,مَا مِنْ يَوْمٍ يُصْبِحُ الْعِبَادُ فِيهِ إِلاَّ مَلَكَانِ يَنْزِلاَنِ فَيَقُولُ أَحَدُهُمَا اللَّهُمَّ أَعْطِ مُنْفِقًا خَلَفًا، وَيَقُولُ الآخَرُ اللَّهُمَّ أَعْطِ مُمْسِكًا تَلَفًا ‘Every morning two angels descend. One of them said, O Allah! Give the giver good recompense for his charity.And the other said, O Allah! Destroy the miser’.[15] Thus, giving a loan is a form of charity through which one can be blessed with the prayers of the angels. How fortunate it is to receive the prayers of the innocent angels of Allah!

(d) Freedom from danger and getting God’s help: When a believing servant selflessly extends a helping hand to someone. Then Allah was so pleased that He Himself became the helper of that servant and protected him from the dangers of this world and the Hereafter. Narrated by Abu Huraira (RA), the Messenger of Allah (PBUH) said, “Whoever removes one of the dangers of the world from a believer, Allah will remove a (difficult) danger from among the dangers of the Hereafter.”Whoever relieves the needy (by helping) the needy, Allah will grant him ease in this world and the Hereafter. Whoever hides the faults of a believer, Allah will hide his faults in this world and the hereafter. Allah continues to help His servants as long as he continues to help his brother’.[16] And undoubtedly, the loan is a help, by which the borrower stands by his side in times of danger. May Allah Almighty grant us the tawfiq to achieve these virtues by giving deeds or giving selfless loans – Amen!

Etiquette of lending:

Giving a loan to help someone is a good deed. And in the field of lending, Islam has described some etiquettes and principles. For example-

(a) Non-Acceptance of Bribery: It is haraam to accept an exchange for giving a loan and to obtain any benefit thereby. Ibn Qudama said: ,

وَكُلُّ قَرْضٍ شَرَطَ فِيهِ أَنْ يَزِيدَهُ، فَهُوَ حَرَامٌ، بِغَيْرِ خِلَافٍ. قَالَ ابْنُ الْمُنْذِرِ: أَجْمَعُوا عَلَى أَنَّ الْمُسَلِّفَ إذَا شَرَطَ عَلَى الْمُسْتَسْلِفِ زِيَادَةً أَوْ هَدِيَّةً، فَأَسْلَفَ عَلَى ذَلِكَ، أَنَّ أَخْذَ الزِّيَادَةِ عَلَى ذَلِكَ رَبًّا. وَقَدْ رُوِيَ عَنْ أُبَيِّ بْنِ كَعْبٍ، وَابْنِ عَبَّاسٍ، وَابْنِ مَسْعُودٍ، أَنَّهُمْ نَهَوْا عَنْ قَرْضٍ جَرَّ مَنْفَعَةً.

‘There is no difference of opinion regarding the prohibition of loans in which the condition of accepting anything extra is haraam. Ibnul Munzeer said, the scholars agree that if the lender imposes any additional profit or allowance on the borrower and the debtor pays it to him, then that extra will be considered as usury. It has been narrated from the companions of Ubayy Ibn Ka’b, Ibnu Abbas and Ibnu Mas’ud (ra) that they forbade taking profit on loans.[17]
Today’s world is crushed by this usurious debt and turned into a fire of unrest. The usurious banks are sucking the blood of the people by sucking the empty words of cooperation in every corner of our society. Our social and economic condition is being crippled by the aggressive attack of usurious loans. This interest based credit system is the main cause of economic instability and unrest. Therefore, to get peace in this world and hereafter, it is necessary to introduce an interest-free financial system in the whole life. Because usurious lending is not cooperation; Rather, it is a great sin.

(b) Non-acceptance of gratuity : One of the etiquettes of lending is not to accept any gratuity from the borrower. Because it is haram to accept a gift in exchange for a loan. Abu Burdah Ibn Abu Musa (RA) said, Once I came to Medina and met Abdullah bin Salam. He said to me,

إِنَّك بِأَرْض فِيْهَا الرِّبَا فَاش إِذا كَانَ لَكَ عَلَى رَجُلٍ حَقٌّ فَأَهْدَى إِلَيْكَ حِمْلَ تَبْنٍ أَو حِملَ شعيرِ أَو حَبْلَ قَتٍّ فَلَا تَأْخُذْهُ فَإِنَّهُ رِبًا.

‘You live in an area where interest rates are high. So if someone owes you anything, and he gives you a load of hay or a load of barley or even a bundle of grass as a gift; You will not accept it. Because it will count as usury’.[18] The meaning of this Aasr is confirmed by the Ijma of other Companions. Ibn al-Qayyim (RA) said:,

وَقَدْ تَقَدَّمَ عَنْ غَيْرِ وَاحِدٍ مِنْ أَعْيَانِهِمْ كَأُبَيٍّ وَابْنِ مَسْعُودٍ وَعَبْدِ اللهِ بْنِ سَلَامٍ وَابْنِ عُمَرَ وَابْنِ عَبَّاسٍ أَنَّهُمْ نَهَوْا الْمُقْرِضَ عَنْ قَبُولِ هَدِيَّةِ الْمُقْتَرِضِ، وَجَعَلُوا قَبُولَهَا رِبًا.

‘It has been narrated on the authority of prominent Companions such as Ubai bin Ka’b, Ibn Mas’ud, Abdullah Ibn Salam, Ibn Umar and Ibn Abbas (RA) that they forbade the lender from accepting gifts from the borrower. They considered accepting this gift as usury’.[19]

Allama Shawqbani (R.A.) said, “If there is an exchange of gifts or gifts between the lender and the borrower due to a deed, it will be considered as usury or bribery.” Which is clearly forbidden. However, if the lender and the borrower already have a habit of exchanging gifts, there is no problem in giving or accepting the gift. [20] For example, once Ibn Omar (R.A.) gave a loan of ten thousand dirhams to Ubai Ibn Ka’b. Then Ubai bin Ka’b gave him some fruits of the land. But Ibn Umar did not accept the fruit and returned it.

Then Ubai (RA) said, “The people of Madinah know that I grow the best fruits and roots.” So why aren’t you taking this fruit-root? After that, when he asked again, Ibn Umar accepted the gift. Ibn al-Qayyim (RA) said, Ibn Umar thought at first that this gift was being given to him because of a loan, so he did not accept it at first. But when he was sure that this gift was not due to his debt, he accepted it’.[21]

(c) Non-Harshness to Insolvent Borrower: The debtor should not be harsh if he is unable to pay his debt. Narrated by Ma Ayesha Siddiqa (RA), the Prophet (PBUH) said,مَنْ طَلَبَ حَقًّا فَلْيَطْلُبْهُ فِي عَفَافٍ وَافٍ، أَوْ غَيْرِ وَافٍ، ‘If a person asks for a debt, let him ask humbly. Whether his debt is paid or not. [22] The greatness of Islam emerges through this hadith of the Messenger of Allah. So be kind to the truly disabled and poor debtors.

Benefits of concession to disabled borrowers:

Just as there are some people in the society who, despite being able, are lax in repaying their loans, there are indeed people who are unable to repay their loans on time. Islam encourages such a person to spend extra time. Those who give respite to the insolvent borrowers have a great reward in this world and the hereafter.
Allah Almighty says, وَإِنْ كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَى مَيْسَرَةٍ وَأَنْ تَصَدَّقُوْا خَيْرٌ لَكُمْ إِنْ كُنْتُمْ تَعْلَمُونَ، ‘And if the debtor is in want, then let him be wealthy. Allow up to And if you forgive the debt, that is better for you, if you knew it’ (Baqarah 2/280).

(a) Earning the reward of charity: If the creditor gives an exemption to the debtor who is unable to pay the debt, then he thereby earns the virtue of charity in the way of Allah. Narrated in Buraida al-Aslami (RA), the Prophet (PBUH) said, مَنْ أَنْظَرَ مُعْسِرًا كَانَ لَهُ بِكُلِّ يَوْمٍ صَدَقَةٌ، وَمَنْ أَنْظَرَهُ بَعْدَ حِلِّهِ كَانَ لَهُ مِثْلُهُ، فِي كُلِّ يَوْمٍ صَدَقَةٌ. ‘He who gives respite to a needy person (in debt) will be rewarded for giving charity.” And the person who extends the time even after the expiry of the repayment period, he will also gain the merit of giving charity every day’.[23]

(b) Dua of the Messenger of Allah: The Messenger of Allah (PBUH) prayed for mercy for the debtor who is tolerant of the needy borrower. Narrated in Jaber (RA), the Prophet (PBUH) said,رَحِمَ اللهُ عَبْدًا سَمْحًا إِذَا بَاعَ، سَمْحًا إِذَا اشْتَرَى، سَمْحًا إِذَا اقْتَضَى، ‘May Allah shower mercy on the servant who is generous in buying and selling. mind is and ( of debt) is forbearance in the collection of dues’.[24]. If the supplication of the Prophet (peace be upon him) can be obtained by showing tolerance towards the debtor, then what can be a greater good fortune than that!

(c) Fortune of shade under the Arsh: Those who show tenderness towards the debtors who are unable to gain Allah’s pleasure or forgive their debts, Allah will shelter them under the shade of His Arsh on the Day of Resurrection.Narrated by Abu Huraira (RA), the Messenger of Allah (PBUH) said,مَنْ أَنْظَرَ مُعْسِرًا، أَوْ وَضَعَ لَهُ، أَظَلَّهُ اللهُ يَوْمَ القِيَامَةِ تَحْتَ ظِلِّ عَرْشِهِ يَوْمَ لَا ظِلَّ إِلَّا ظِلُّهُ ‘One who gives opportunity to a needy debtor or forgives a debt , on the day of Qiyamat, Almighty Allah will grant him shelter under the shade of His Throne. On the Day when there will be no shadow except the shadow of His Throne’.[25]

(d) Forgiveness from Allah: One of the ways to obtain forgiveness from Allah on the Day of Judgment is to forgive the debts of needy and poor debtors. Abdullah Ibn Masood (RA) said, the Messenger of Allah (PBUH) said,

حُوسِبَ رَجُلٌ مِمَّنْ كَانَ قَبْلَكُمْ، فَلَمْ يُوجَدْ لَهُ مِنَ الْخَيْرِ شَيْءٌ، إِلَّا أَنَّهُ كَانَ يُخَالِطُ النَّاسَ، وَكَانَ مُوسِرًا، فَكَانَ يَأْمُرُ غِلْمَانَهُ أَنْ يَتَجَاوَزُوا عَنِ الْمُعْسِرِ. قَالَ: قَالَ اللهُ عَزَّ وَجَلَّ: نَحْنُ أَحَقُّ بِذَلِكَ مِنْهُ، تَجَاوَزُوا عَنْهُ.

‘Among the people before you, a person was taken to account, but no good deeds were found in him. But he dealt with people and he was wealthy. So he used to instruct his servants to forgive the poor people. The Messenger of Allah (peace be upon him) said, Allah said (to the angels), ‘I am more qualified than him in this matter (i.e. in forgiving him). Forgive it’.[26] In another narration he said,مَنْ سَرَّهُ أَنْ يُنْجِيَهُ اللهُ مِنْ كُرَبِ يَوْمِ الْقِيَامَةِ، فَلْيُنَفِّسْ عَنْ مُعْسِرٍ، أَوْ يَضَعْ عَنْهُ ‘Whosoever desires that Allah relieve him from the sufferings of the Day of Resurrection. direction, that he should make easy arrangements for the disabled debtors or forgives the debt’.[27]
(continued)

References

[1]. Hashiya Ibnil Abidin 4/171; Accepted: Al-Mawsu’atul Fiqhiyah 33/111.

[2]. Musnad Ahmad Ha/10578, 7988, Sanad Hasan.

[3]. Bukhari Ha/2306,2394; Mishkat Ha/2906, 2926.

[4]. Bukhari Ha/6369.

[5]. Tirmidhi Ha/3563; Mishkat Ha/2449; Sanad Hasan.

[6]. Bayhaqvi, Sunanul Kubra Ha/10715; Irwa Ha/1397, Sanad Sahih.

[7]. Tirmidhi Ha/1572; Ibn Majah ha/2412; Chahihut Targhib wat Tarhib Ha/2892; Mishkat Ha/2921, Sanad Shahih.

[8]. Ahmad Ha/17227; Mishkat Ha/2928, Sanad Shahih

[9]. Ahmad Ha/22493; Mustadarak Hakem Ha/2212; Chahihut Targib Ha/1804; Mishkat Ha/2929, Sanad Sahih.

[10]. Bukhari Ha/2389; Muslim Ha/991.

[11]. Silsila Chahihah Ha/3407; Chahihut Targib Ha/900, Sanad Hasan.