✿ Written by: Saudi Fatwa Committee (Fatāwā)
❖ Ruling on Giving a Loan
In common usage, a loan (qarḍ) refers to giving someone money on credit to be repaid later. According to Islamic teachings:
- Lending is a Sunnah and a virtuous act that earns reward.
- It falls under the general guidance of the Qur’anic verse:
«وَأَحْسِنُوا ۛ إِنَّ اللَّهَ يُحِبُّ الْمُحْسِنِينَ»
(Al-Baqarah: 195)
“And do good; indeed, Allah loves the doers of good.”
Even the Messenger of Allah ﷺ would sometimes request loans, indicating its permissibility.
- For the borrower, taking a loan is permissible (mubāḥ).
- For the lender, giving a loan is Sunnah and highly recommended.
❖ Avoiding Harm and Reproach After Lending
The lender must not remind the borrower of the favor or cause him emotional harm. For instance, saying:
“I did a favor by lending you money, and this is how you repay me?”
Such conduct is prohibited, as Allah ﷻ says:
«يَا أَيُّهَا الَّذِينَ آمَنُوا لَا تُبْطِلُوا صَدَقَاتِكُم بِالْمَنِّ وَالْأَذَىٰ»
(Al-Baqarah: 264)
“O you who believe! Do not nullify your charity by reminders or hurtful words.”
❖ Writing Down the Loan Agreement
If the loan is from one’s personal wealth, then writing it down is recommended under the general ruling of:
«يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنتُم بِدَيْنٍ إِلَىٰ أَجَلٍ مُّسَمًّى فَاكْتُبُوهُ»
(Al-Baqarah: 282)
“O you who believe! When you contract a debt for a fixed term, write it down.”
However, if the loan involves minor or customary items, and people generally do not write such transactions, then leaving it unwritten is permissible.
❖ Special Case: Lending from Another’s Wealth (e.g., an Orphan’s Property)
If a person lends from someone else’s property, such as an orphan’s wealth under his guardianship, then:
- Writing down the loan becomes mandatory,
- Because doing so protects the orphan’s wealth.
Allah ﷻ says:
«وَلَا تَقْرَبُوا مَالَ الْيَتِيمِ إِلَّا بِالَّتِي هِيَ أَحْسَنُ حَتَّىٰ يَبْلُغَ أَشُدَّهُ»
(Al-Anʿām: 152)
“Do not approach the wealth of the orphan except in the best manner until he reaches maturity.”
Reference:
Ibn ʿUthaymīn – Nūr ʿalā ad-Darb, 1/244
