Miscellaneous Shariah rulings about 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 Most High 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. 

 

Buying a vehicle on installments

 

On taking an auto on finance, the amount is returned in installments.

 

Buying or selling, whether it is with paying money on the spot or on loan, whether the payment is made all at once or in installments, is valid and permissible with a few conditions.

 

As Allah says in Surah Baqarah:

 

Allah has declared trading (buying and selling) lawful and usury unlawful.  Surah Baqarah (2:275)

 

This verse mentions that buying and selling is Halal (permissible).  In this permission, buying with spot payment and on loan, both are included regardless of whether the payment is made lump sum or in installments.

 

The difference between the price on spot payment and installments, the time period of installments and the difference in price based on the number of goods, etc. is all left to the discretion of the buyer and the seller.  However, it is better to decide everything clearly beforehand.  It is also necessary to decide the number of installments and their time period well in advance.  Increasing the amount due to nonpayment after deciding all these details comes under usury, which is prohibited in Islam.  Thus, the amount decided at the time of the deal, whether it is less or more, only that amount is to be paid.

 

As given in "Minhatul Khaliq ‘Alal Bahr Ur Raiq, Vol. 5, Pg. No: 280 and "Badai Us Sanai", Vol. 4, Pg. No: 407.

 

Buying an auto on installments with the above conditions is permissible in the light of the Shariah.

 

Giving gold as loan

 

n 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.  For e.g., if Rs. 80,000 worth of gold is taken, then at the time of repayment, the weight of the gold for the said amount should be returned.  As given in Durre Mukhtaar, Vol. 4, Kitab Ul Buyu’

 

Dua for debt clearance

 

After the Salaat (Namaz), recite Durud and recite this Dua.  Allah 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. 

 

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

 

Translation: O Allah! I seek your protection from sorrow, from helplessness, from laziness, from miserliness, from cowardice, from debt and from being dominated by people.