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Sunday, December 2, 2012


Assalam oalaikum,

In this post I shall discuss about the general guidelines on loans (based on the Shariah injunctions) which should be followed by every practicing Muslim to appease Allah (swt):

Prior to the distribution of the property of the deceased amongst his legal heirs, his unpaid loans have to be cleared.
 A loan should be taken with a niyaah of returning it. There is a hadith regarding this. Prophet Mohammad (saw) said ‘Whoever takes a loan without an intention of returning it, is a thief’. (Ibn Majah)
A person who is unable to repay a loan is entitled to get zakat for clearing his debt. Verse 9:60 of the Holy Quran states that the debtors are eligible for receiving zakat.
 Verse 2:282 of the Holy Quran deals with the topic of loans at length. Since oral agreements regarding to loans can lead to disputes, Quran has made it obligatory on the debtor as well as the creditor to have the contract written in the presence of two witnesses. The conditions of the loans should also be settled by both the parties. The debtor should dictate the conditions to a scribe. In case the debtor is a minor or is insane then his guardian should dictate it. If the loan is given during a journey and a scribe is not available, the borrower should part with some of his property to the lender as a pledge. The scribe and the two witnesses are expected to be fair in writing the contract and in giving witness. On the other hand the borrower and the lender are expected not to harm them in any way. Islam greatly emphasizes on writing down the loan agreement.
After going through the principles of loan in Islam we find that Islam has dealt with this issue in a way that entails justice, mercy, brotherhood, equality.

Keep Me In Your Prayers.
Amel Soname

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