Lending

Lending means taking or giving something on a promise for a particular period. Doing some transactions on the promise of the future payment. Lending to the urgent financial help of a needy, lending something to a needy (for a fixed time).

A borrowing or a loan is the amount of money taken between two parties or the receipt of any goods or commodities which has to be paid on the promise. The lender is called the Debtor and the borrower is the Creditor. 

A person should make every effort not to borrow from another person. Because borrowing is not a good practice and even the Shariah does not make borrowing a viable process. Rather, in a state of extreme compulsion and helplessness, man must take steps to borrow. And the borrower must also keep in mind how, when and where he will repay the borrowed money. And it is better to borrow only money that is easier to repay. 

A decent, honest and conscious person should think repeatedly while borrowing. Keeping your own and your family's credibility in place should only borrow that much money and ensure the availability of financial resources to repay.

Every dignified person will never wish that situation arise to that level that force him to borrow. Because it is easy to get a loan, but when it comes to repayment, man thinks himself perplexed and helpless. Our beloved Prophet Muhammad (pbuh) also sought refuge in debt. 

See a Hadith:

أنَّ رَسُوْلَ اللہ صَلَّی اللہ عَلَیْہ وَسَلَّمَ کَانَ یَدْعُوْ فِی الصَّلاَةِ، وَیَقُوْلُ:اللہُمَّ اِنِّی أعُوْذُبِکَ مِنَ الْمَأثَم وَالْمَغْرَم،فَقَال قَائِلٌ:ما أکثر مَا تَسْتَعِیْذُ یَا رَسُوْلَ اللہ مِنَ الْمَغْرَم؟ قال:اِنَّ الرَّجُل اِذَا غَرِمَ حَدَّثَ فَکَذَبَ، وَوَعَدَ فَأَخْلَفَ۔

When Prophet Muhammed (SAW) make Dua in prayer, he say: O Allah! I ask for your protection from sin and debt. Someone asked, "O Allah's Messenger! What matters is that you often seek refuge with debt.  Prophet Muhammed (SAW) replied that when a man is in debt, he speaks and lies, make false promises and turns against it.

And Sunn-ul-Nasa'i narrates:

عن النَّبِیِّ صَلَّی اللہ عَلَیْہ وَسَلَّمَ قَالَ: أَعُوْذُ بِاللہ مِنَ الْکُفْرِ وَالَدَّیْن․ فَقَالَ رَجُلٌ:تَعْدِلُ الدَّیْنَ بالکفُرْ؟فَقَالَ:نَعَم

Prophet  Muhammed (SAW) said: I seek refuge in Allah, with disbelief and debt. So a man asked, "O Messenger of Allah, are you calling debt similar to disbelief or Kufr?" Then Prophet Muhammed (SAW) replied YES.

In the above hadiths, debt is considered as infidelity, and due to debt, one can commit falsehood.

It can be understood that the loan is a fault. Man should try to his level best not to be burdened with debt even though it is a burden which is very difficult and it is not possible to live with a burdened body.

Debt is the poison killer for human relations. When the borrower is unable to repay the money on time, he makes repeated excuses for more time and uses the lie.

If you trust your friends that they will not leave you in any case but will remain with you for a lifetime, then try this method. You will get a sense of debt misconduct and it will be clear that why did Prophet Muhammad (pbuh) seek refuge with debt?

Lend your poor friends and ask for loans from rich friends. That means extending the loan to poor friends and asking rich friends for a loan. In fact, no intention to get money from rich people. Soon, friends of both classes will be leaving you.

Debt is a curse that makes bloody relationships hostile to one another. People kill each other for their refund.

Debt is a burden that a person has to pay himself or his family. Almighty Allah does not forgive the loan amount. That is why when the funeral of a human is being offered, it is declared that if a person has a transaction for the deceased, he should contact the heir.

In addition, there is a loan which is called a Qarze Hasanah. There are two ways you can give Qarze Hasanah. One is that the lender says that I am giving the money to the borrower in view of his legitimate need so that he can get out of his difficult time. And return it whenever he has the money, and if not, it doesn't matter. The second way is to tell the lender to the borrower that I am giving this money in the name of Allah and I will take the reward only from Allah and the borrower has no burden whatsoever.

Qarze Hasanah is purely for the pleasure of Almighty Allah. Qarze Hasanah is a business between good man and Almighty, in which Almighty promises that he will multiply the wealth you give HIM and return it to you. Allah says in Quran:-

مَن ذَالَّذِي يُقْرِضُ اللهَ قَرْضاً حَسَناً فَيُضٰعِفُهُ لَهُ اَضْعَافاً كَثِيْرَةً- سورہ البقرہ آیت 245 

Who is it that gives a Qarze Hasanah to Allah? May Allah increase it by multiplying it many times. 

Almighty Allah has made some rich in human society, then one poor, so that this system can keep the universe running.  Allah says in Quran:

أَهُمْ يَقْسِمُونَ رَحْمَتَ رَبِّكَ نَحْنُ قَسَمْنَا بَيْنَهُم مَّعِيشَتَهُمْ فِي الْحَيَاةِ الدُّنْيَا وَرَفَعْنَا بَعْضَهُمْ فَوْقَ بَعْضٍ دَرَجَاتٍ لِّيَتَّخِذَ بَعْضُهُم بَعْضًا سُخْرِيًّا وَرَحْمَتُ رَبِّكَ خَيْرٌ مِّمَّا يَجْمَعُونَ۔ سورہ زخرف آیت 32 

Do they share the mercy of your Creator and Nourisher? We have divided their economy among them into the life of the world, and raised one another above them so that they may serve one another, and the mercy of your Creator and Nourisher is better than what they amass.

Qarze Hasanah is very high worship. Those who are capable, worthy of wealth, should help people out of their wealth. If you can save someone's life by spending some money so that the whole family does not get shattered, you can afford someone else's education to complete their education so that a human being can earn a living. You can help someone finance their small business so they can run their own home. By financially assisting a middle-class family, you can bring their daughter's marriage to an end so that someone's home can be settled etc. etc.

Allah Almighty is the Creator, the right owner and the Nourisher of the universe. No one knows better than Allah what to do, when and how to give. There are times in our life when we need someone to help us and sometimes we are in a position to help someone.

It is humanity that one human being grieves and helps another human being. If we start living our lives indifferently to the needy, you will lose true happiness. There is no substitute for the happiness that comes from helping human beings. Because it is a matter of great fortune that may Allah enable a human being to be able to spread happiness on the faces of others.

While borrowing a man should borrow only that amount which can be easily repaid from the income. An employed man can borrow only the amount that he can pay from the next month's salary. In case of extreme emergency, a bigger amount can also be borrowed that can be paid regularly within a period of six months. 

And you have to be very careful about lending. Whenever anyone asks for money. You must look at his/her need and be convinced that he/she is really needed and that the need is legitimate. Then confirm the amount of the loan and how and where it will pay.

The wealth or money of every human being is very valuable, and the wealth that Almighty has bestowed upon you should not be wasted.

Some people get the impression that you are very good by your appearance and upbringing. While you are working like them. But some low-key, poor-looking and self-deprecating people think of your compassion and indifference to the materials life as you are fool and are trying to get the money out of you. You just don't understand what's the matter. In this matter, I am sharing a true story so that readers are aware of how strange the world is. 

There are people who possess so much courage or moral humility and prepare themselves to buy a plot from someone's money.

Once upon a time when I was working with Saudi Aramco, in Yanbu, Saudi Arabia, someone invited a few families to his house. Amongst them one of the invitees during the dinner whispered me that a 10 Marla, Plot is available for sale in Wapda Town, Lahore.

When he mentioned the plot more than once, in other gatherings as well, I realized that he liked the plot and could not arrange for immediate payment. By the way, I asked him how much money he wanted. He replied an amount equal to US$ 10,000. I arranged this amount from my USDollar Account in Lahore, Pakistan. After a while he again demanded another US$ 2,000 which I arranged too. 

After a few weeks, when I asked for payment, the reply was that you need a refund. I was very angry, but seized it. And then it turns out that he has no money to pay. In brief, I had to start a committee to recover the money,  and the last committee would come out in his name. In this way, I had to restart another committee to cover my US$12,000. It was like two years and a few months the money was recovered. However, my savings were disbursed and I had to gone through unwanted worries and hassles.  

Just imagine the extent to which people can deviate for their benefit. While believers and scholars consider the other's investments to be a trust.

For this reason, Islam has adopted this principle for the issue of debt so as not to suffer hassle and annoyance:-

یَاأَیُّہَا الَّذِینَ آمَنُوا إِذَا تَدَایَنْتُمْ بِدَیْنٍ إِلَی أَجَلٍ مُسَمًّی فَاکْتُبُوہُ۔۔۔ وَاسْتَشْہِدُوا شَہِیدَیْنِ مِنْ رِجَالِکُمْ -البقرة: 282

Translation: O you who believe, when deal with one another for Loan on a fixed period of time you must write down, and take two of your men as witnesses.

Apart from this, when you are lending a large amount and you are likely to feel that borrower is unable to repay your loan. In such a way, you should guarantee the gold or other valuables or land papers from the borrower for a guaranteed return on your investment.

When a borrower takes out a loan from his lender, he should be grateful that he has met my need. Try to repay the loan on time and pay it yourself before the lender ask for it, not that it can be avoided to be paid today or tomorrow. The Prophet (peace be upon him) has declared it as a cruelty on the part of borrower.

We see in society that a man takes out a loan and does not pay the debt despite having the power to repay the loan, and continues to revolve around it.  This honest person did the favor to the borrower and in return he got such a reward that he is wondering around to recover his money.  One should avoid such behavior, so as the Lender do not give him a bad prayer in this problematic situation; of which there is no doubt about acceptance.

If a person avoids indulgence to repay the loan, the Shariah has allowed him to be imprisoned.

If a person takes a loan with the intention that he will not pay, then it is like eating haram (forbidden).

If one takes a loan and consumes it and the lender does not have the ability to recover the loan from him, this loan will be recovered from him in the form of good deeds in the Day of Judgement.

If someone borrowed from many people or ate the right of many people, whom he does not know anymore.  So he should find those people as much as possible and return them their rights.  If he does not find them, then give the money to their parents or children. If it is not possible to find them, in such a case as the amount of borrowed or the rights are eaten, then donate the amount to charity and intend that its reward reach to the original owner.

Whenever someone asks you for money, do not answer yes or no immediately, but ask for a few days.

In the meantime, consider your financial situation and your responsibilities honestly and take into consideration the borrower's needs and his financial situation.

And before giving money to someone, make sure that the situation is under control and the relationship does not go awry.

In financial matters it is better not to keep someone in the dark than give a clear answer NO.

It is better to have a one-time remorse than to repeatedly repent.

Nevertheless, help as much as possible to the real needy and the dignified people. Because with human help you not only ease the hardships of others, but also deserve the pleasures of Almighty Allah.

In addition to being deserving of the pleasures of Almighty Allah, you continue the process of making yourself a good human being and training your piety and self.

There are a lot of proverbs related to lending money, remember to keep them in mind, such as:-

• To lend is to invite grieve.
• To lend is to invite fighting. 
• To lend is making enemies.
• To lend and the customer is lost.

Abdul Qayum Khan Ghouri - Lahore Pakistan