✿ Written by: Saudi Fatwa Committee (Fatāwā)
In common usage, a loan (qarḍ) refers to giving someone money on credit to be repaid later. According to Islamic teachings:
Even the Messenger of Allah ﷺ would sometimes request loans, indicating its permissibility.
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.”
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.
If a person lends from someone else’s property, such as an orphan’s wealth under his guardianship, then:
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
❖ 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
