Significance of Giving out Loans
All praise is due to Allah and May His Peace and Blessings be upon the Last Prophet Muhammad (pbuh) and all those who follow the path of righteousness until the Last Day.
Lending is one of the highly recommended acts. Emphatic exhortations are related in the Noble Qur’an, the Prophet's Sunnah. Islam encourages those who have enough wealth to give loans to those who request it. However it is important that the lender should not seek any interest or material benefit from giving a loan. He must seek the ethical value when advancing money as a loan and not expect anything material in return. By this way the lender is enhancing his personal quality of generosity and trying to remove any traits of stinginess from his soul. The motive is to help a person in need and seek only the reward and pleasure of Allah (swt).
Lending is a beautiful form of worship, when there is a good intention and is done for the sake of Allah. The returns of investment of lending is unbelievable. Prophet (pbuh) said, “The reward for lending is repayment and words of paradise.” (Sunan Ibn Majah 15:2424)
Investing with Allah is the best business. There is no credit crunch, no one would be bankrupt, because the provider is Allah. He gives the riziq, He gives humans the ability to stand, the ability to work and the ability to move around. However the Prophet (pbuh) tells us that this part of investment has high returns.
In many places of the Qur'an, Allah has mentioned and encouraged His creature for qard al-hasan by assuring better reward in this world and in the Hereafter. In the Qur'an Allah says,
Who is it that would loan Allah a goodly loan so He may multiply it for him many times over? And it is Allah who withholds and grants abundance, and to Him you will be returned. [Al-Baqara: 245]
If you loan Allah a goodly loan, He will multiply it for you and forgive you. And Allah is Most Appreciative and Forbearing. [Al-Tagabun: 17]
And Allah had already taken a covenant from the Children of Israel, and We delegated from among them twelve leaders. And Allah said, "I am with you. If you establish prayer and give zakah and believe in My messengers and support them and loan Allah a goodly loan, I will surely remove from you your misdeeds and admit you to gardens beneath which rivers flow. But whoever of you disbelieves after that has certainly strayed from the soundness of the way." [Al-Maaida: 12]
Who is it that would loan Allah a goodly loan so He will multiply it for him and he will have a noble reward? [Al-Hadid: 11]
Indeed, the men who practice charity and the women who practice charity and [they who] have loaned Allah a goodly loan - it will be multiplied for them, and they will have a noble reward. [Al-Hadid: 18]
Giving loan may increase rewards in multiple stages. Prophet (pbuh) said: “There is no Muslim who lends something to another Muslim twice, but it will be like giving charity once.” (Sunan Ibn Majah: 2430)
So if somebody gives a thousand Dollars as a loan and debtor returns it a week later and then asks for another thousand Dollars, lender gives that and the debtor returns it a month later, Allah (swt), would reward him as if he has given a sadaqa of thousand Dollars but the two thousand Dollars are in his pocket. So it is approximately 50% returnable investment.
Not only that, Prophet (pbuh) said: “Whoever gives respite to one in difficulty, he will have (the reward of) an act of charity for each day. Whoever gives him respite after payment becomes due, will have (the reward of) an act of charity equal to (the amount of the loan) for each day.” (Sunan Ibn Majah 15:2418)
So when somebody gives loan and the due date has come but the debtor asks for time because he is in difficulty. If creditor gives him time he will get reward for sadaqa of same amount every day.
People have their Dollars in the banks or under the mattress or wherever they hide their money. But there are so many needy people in need of money. Majority of people have invested their money in haram rather giving it to their needy trustworthy brothers, who are willing to pay back and has good intention to pay back, yet we refuse to invest with Allah.
Prophet (pbuh) said, "Once a man died and was asked, 'What did you use to say (or do) (in your life time)?' He replied, 'I was a businessman and used to give time to the rich to repay his debt and (used to) deduct part of the debt of the poor.' So he was forgiven (his sins.)" Abu Masud said, "I heard the same (Hadith) from the Prophet." (Bukhari 3:41:576)
And the loan must be given without having any worldly service or interest from the debtor. Taking interest is declaring war with Allah and his Messenger (pbuh). One exemplary incident from the biography of Imam Abu Hanifa, it was reported that he used to sit in the shade of a house of his neighbor, every afternoon. One day his neighbor came and borrowed some money from Imam Abu Hanifa and since then he stopped sitting in the shade of his neighbor, why? He said,” I was afraid that by sitting in the shade of his house, who took money from me, would be interest and I don’t want to break his heart and remind him that he took something from me.” Allah says in the Qur’an,” And if the debtor is in hard time, if he does not have money then grant him time till it is easy for him to repay.” And this shows how close Muslims are. (Debts in Islam)
Nowadays if people lend money, they may be lending to people of their own status and do not like to give loan to the poor because they think that it is difficult to recover from them. As far as remitting a loan is concerned, we have totally forgotten this precept. In any case, refusing loan to a poor from a person having a position to lend money to him, is hateful.
To lend money to a needy and then to show him leniency in its payment or to remit it altogether is a praiseworthy act, the best reward for which will be given to him on the Day of Resurrection. May Allah enable us to be generous to the poor and needy.
Lending is one of the highly recommended acts. Emphatic exhortations are related in the Noble Qur’an, the Prophet's Sunnah. Islam encourages those who have enough wealth to give loans to those who request it. However it is important that the lender should not seek any interest or material benefit from giving a loan. He must seek the ethical value when advancing money as a loan and not expect anything material in return. By this way the lender is enhancing his personal quality of generosity and trying to remove any traits of stinginess from his soul. The motive is to help a person in need and seek only the reward and pleasure of Allah (swt).
Lending is a beautiful form of worship, when there is a good intention and is done for the sake of Allah. The returns of investment of lending is unbelievable. Prophet (pbuh) said, “The reward for lending is repayment and words of paradise.” (Sunan Ibn Majah 15:2424)
Investing with Allah is the best business. There is no credit crunch, no one would be bankrupt, because the provider is Allah. He gives the riziq, He gives humans the ability to stand, the ability to work and the ability to move around. However the Prophet (pbuh) tells us that this part of investment has high returns.
In many places of the Qur'an, Allah has mentioned and encouraged His creature for qard al-hasan by assuring better reward in this world and in the Hereafter. In the Qur'an Allah says,
Who is it that would loan Allah a goodly loan so He may multiply it for him many times over? And it is Allah who withholds and grants abundance, and to Him you will be returned. [Al-Baqara: 245]
If you loan Allah a goodly loan, He will multiply it for you and forgive you. And Allah is Most Appreciative and Forbearing. [Al-Tagabun: 17]
And Allah had already taken a covenant from the Children of Israel, and We delegated from among them twelve leaders. And Allah said, "I am with you. If you establish prayer and give zakah and believe in My messengers and support them and loan Allah a goodly loan, I will surely remove from you your misdeeds and admit you to gardens beneath which rivers flow. But whoever of you disbelieves after that has certainly strayed from the soundness of the way." [Al-Maaida: 12]
Who is it that would loan Allah a goodly loan so He will multiply it for him and he will have a noble reward? [Al-Hadid: 11]
Indeed, the men who practice charity and the women who practice charity and [they who] have loaned Allah a goodly loan - it will be multiplied for them, and they will have a noble reward. [Al-Hadid: 18]
Giving loan may increase rewards in multiple stages. Prophet (pbuh) said: “There is no Muslim who lends something to another Muslim twice, but it will be like giving charity once.” (Sunan Ibn Majah: 2430)
So if somebody gives a thousand Dollars as a loan and debtor returns it a week later and then asks for another thousand Dollars, lender gives that and the debtor returns it a month later, Allah (swt), would reward him as if he has given a sadaqa of thousand Dollars but the two thousand Dollars are in his pocket. So it is approximately 50% returnable investment.
Not only that, Prophet (pbuh) said: “Whoever gives respite to one in difficulty, he will have (the reward of) an act of charity for each day. Whoever gives him respite after payment becomes due, will have (the reward of) an act of charity equal to (the amount of the loan) for each day.” (Sunan Ibn Majah 15:2418)
So when somebody gives loan and the due date has come but the debtor asks for time because he is in difficulty. If creditor gives him time he will get reward for sadaqa of same amount every day.
People have their Dollars in the banks or under the mattress or wherever they hide their money. But there are so many needy people in need of money. Majority of people have invested their money in haram rather giving it to their needy trustworthy brothers, who are willing to pay back and has good intention to pay back, yet we refuse to invest with Allah.
Prophet (pbuh) said, "Once a man died and was asked, 'What did you use to say (or do) (in your life time)?' He replied, 'I was a businessman and used to give time to the rich to repay his debt and (used to) deduct part of the debt of the poor.' So he was forgiven (his sins.)" Abu Masud said, "I heard the same (Hadith) from the Prophet." (Bukhari 3:41:576)
And the loan must be given without having any worldly service or interest from the debtor. Taking interest is declaring war with Allah and his Messenger (pbuh). One exemplary incident from the biography of Imam Abu Hanifa, it was reported that he used to sit in the shade of a house of his neighbor, every afternoon. One day his neighbor came and borrowed some money from Imam Abu Hanifa and since then he stopped sitting in the shade of his neighbor, why? He said,” I was afraid that by sitting in the shade of his house, who took money from me, would be interest and I don’t want to break his heart and remind him that he took something from me.” Allah says in the Qur’an,” And if the debtor is in hard time, if he does not have money then grant him time till it is easy for him to repay.” And this shows how close Muslims are. (Debts in Islam)
Nowadays if people lend money, they may be lending to people of their own status and do not like to give loan to the poor because they think that it is difficult to recover from them. As far as remitting a loan is concerned, we have totally forgotten this precept. In any case, refusing loan to a poor from a person having a position to lend money to him, is hateful.
To lend money to a needy and then to show him leniency in its payment or to remit it altogether is a praiseworthy act, the best reward for which will be given to him on the Day of Resurrection. May Allah enable us to be generous to the poor and needy.
Bibliography
Sunan Ibn Majah 15:2424. n.d.
Sunan Ibn Majah: 2430. n.d.
Bukhari 3:41:576. n.d.
"Debts in Islam." 17 June 2015. assimalhakeem.net.
Sunan Ibn Majah: 2430. n.d.
Bukhari 3:41:576. n.d.
"Debts in Islam." 17 June 2015. assimalhakeem.net.
© 2015 by Tauhid Ahmed.