Some rules regarding loans

 

Islam has created the way of giving loans to the needy people and has given glad tidings on doing so.  When taking a loan, an intention of returning it must be made, as this leads to the benevolence of Allah Most High in this world and the next.  It is mentioned in the Hadith:

 

Allah (Subhanahu Wa Ta'ala) helps the person who takes a loan and has the intention of returning it.  You will receive reward even on the intention of repaying the loan.

 

The ruling about this is that the money regardless of whether it remains with the borrower or the lender, it is the property of the lender.  It is the responsibility of the borrower to repay the loan within the stipulated period.  If the lender dies, then giving away the money in charity is not correct, as then the amount becomes the inheritance of the heirs and inheritance cannot be given to others. 

 

Taking a bank loan for construction of house

 

For a very dire need, there is a possibility of taking a bank loan, but it is necessary to confirm that the need is indeed a dire one.  The construction of house is not a dire need.  Thus, taking an interest-based loan for this is not permissible as per the Shariah.

 

Giving gold as loan

 

In the Shariah, giving gold as loan is permissible.  If gold is taken as a loan, then as per the Shariah, the same quantity (weight) of gold has to be returned.  Here the fluctuations in the price of the gold are not considered, only the weight of the gold will be considered.  Thus, if Rs. 80000 worth of gold is taken, then the weight of the gold for the said amount should be returned at the time of repayment.  As given in Durre Mukhtaar, Vol. 4, Kitab Ul Buyu’

 

Supplication for debt clearance

 

After the Salaat (Namaz), you recite Durud and recite this Dua.  Allah Ta'ala willing, your difficulties will be solved:

 

Transliteration:  Allahumma Innee A'aoodhubika Minal Hammi Wal Huzni Wal 'Ajzi Wal Kasli Wal Bukhli Wal Jubni Wa Zal 'Id Daini wa Ghalabatir Rijali. 

 

Translation: O Allah (Subhanahu Wa Ta'ala)! I seek your protection from sorrow, from helplessness, from laziness, from miserliness, from cowardice, from debt and from being dominated by people. 

 

You keep reciting this Dua with Durud after every Salaat.  Allah willing, your difficulties will be dispelled.