Sayyiduna Abu al-Yasar (may Allah be pleased with him) said: I heard the Messenger of Allah (peace and blessings be upon him) say: "Whoever grants respite to a needy (debtor)" or he said: "Whoever forgives the debt of a needy person, Allah Almighty will grant him shade on the Day when there will be no shade except His shade."
The narrator said: Sayyiduna Abu al-Yasar (may Allah be pleased with him) had the document brought in which the debt was written, and he erased it and said to his debtor: "Go, I have forgiven it," and he informed that he himself had once been needy and in hardship.
Hadith Takhrijاس حدیث کی سند صحیح اور حدیث بھی صحیح ہے۔ دیکھئے: [مسلم 2006] ، [ابن ماجه 2419 مختصرًا] ، [ابن حبان 5044] ، [ابن أبى شيبه 2211] ، [عبد بن حميد 378] ، [شرح السنة 2142] ، [مجمع الزوائد 6753]
Brief Explanation
(Commentary on Hadith 2623)
From this hadith, it is understood how great the virtue is in showing leniency to a poor and needy debtor or in forgiving the debt altogether. Such a person will be under the shade of the Throne on the Day of Resurrection.
Imam Muslim rahimahullah has narrated this hadith in great detail, and in the Book of Zuhd, under the story of Sayyiduna Abu Yusr radi Allahu anhu, this hadith is mentioned in detail. In brief, it is that there was some debt owed to Sayyiduna Abu Yusr radi Allahu anhu by a certain person. When he came to collect his due, that person hid himself. He (Abu Yusr radi Allahu anhu) called him, had a document brought, and erased the record of his debt, and then narrated this hadith: "I heard the Messenger of Allah sallallahu alayhi wa sallam say..." etc.