Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

ASSALAM-O-ALAIKUM

Brother, thanks a lot for your early response, im quite happy with your reply. the response you give is so fast, your is the best site which responds in no time.

May ALLAH reward you for your kind work and efforts you all are putting to guide muslims.

Brother as you told , its good to have in writing.

u didnt answer regarding we two parties dotting down in writing, and acknowledging ourself for giving and receiving the loan. is this documentation fine as per shariah or not.

than is it wrong as per islam to trust a friend and give loan.

is trusting without documentation is allowed or not.

can we call it as non shariah, if their is no documentation. just on trust we deal. please reply soon brother.

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Answer:

Not documenting against Shariah

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

May Allah Subhanah reward you with the best of this world and the Hereafter for your kind comments of encouragement for our humble efforts in the propagation of the Truth. If our humble and modest efforts have helped even one brother or sister get closer to Allah and His Deen of Truth, then we would consider ourselves indeed fortunate to have been given this opportunity by the Lord Most Merciful to serve in His Cause. We hope, beg, and pray the Merciful Lord accepts our humble and weak efforts, forgives us our shortcomings, and saves you, us, and all the believers from the torment of the Hell Fire. Ameen.

Allah Says in the Holy Quran Chapter 2 Surah Baqarah verses 282-283:

282 O ye who believe! When ye deal with each other in transactions involving future obligations in a fixed period of time, reduce them to writing. Let a scribe write down faithfully as between the parties: let not the scribe refuse to write as Allah has taught him, so let him write. Let him who incurs the liability dictate, but let him fear his Lord Allah and not diminish aught of what he owes. If the party liable is mentally deficient, or weak, or unable himself to dictate, let his guardian dictate faithfully. And get two witnesses out of your own men; and if there are not two men then a man and two women such as ye choose for witnesses, so that if one of them errs the other can remind her. The witnesses should not refuse when they are called on (for evidence). Disdain not to reduce to writing (your contract) for a future period, whether it be small or big; it is juster in the Sight of Allah. more suitable as evidence, and more convenient to prevent doubts among yourselves; but if it be a transaction which ye carry out on the spot among yourselves there is no blame on you if ye reduce it not to writing. But take witnesses whenever ye make a commercial contract; and let neither scribe nor witness suffer harm. If ye do (such harm) it would be wickedness in you. So fear Allah; for it is Allah that teaches you. And Allah is well acquainted with all things.

283 If ye are on a journey and cannot find a scribe, a pledge with possession (may serve the purpose). And if one of you deposits a thing on trust with another, let the trustee (faithfully) discharge his trust, and let him fear his Lord. Conceal not evidence; for whoever conceals it, his heart is tainted with sin. And Allah Knows all that ye do.

Your Question: Brother as you told , its good to have in writing. u didnt answer regarding we two parties dotting down in writing, and acknowledging ourself for giving and receiving the loan. is this documentation fine as per shariah or not.

In light of the above quoted Guidance of the Glorious Quran, if you and the brother you are taking the loan from document the transaction accurately and take two witnesses, it would be in absolute accordance with the Shariah.

Your Question: than is it wrong as per islam to trust a friend and give loan.

To assume or declare that ‘it is wrong as per Islam to trust a friend and give a loan’ would be inaccurate and incorrect! As much as one may trust one’s friend and wish to give them the loan, it would still be best and in accordance with the Guidance of the Quran that the two friends document the transaction and take two witnesses.

Allow us to relate an example to make our point clearer: Allah Subhanah has made prayers obligatory for the believers…..if one offers the prayer alone it is permissible and lawful and would suffice to fulfill their obligation of prayer; but if one follows the guidance and the absolutely preferred Sunnah of the Messenger of Allah (saws) and offers their obligatory prayers in congregation in the masjids, it would be best and closest to the Guidance of Allah and His Messenger (saws).

Your Question:…. is trusting without documentation is allowed or not.

Giving a loan to a friend based only on trust is allowed in Shariah, but piety and righteousness dictates that one follow the Commands and the Guidance of the Lord and put this transaction in writing…that would be best and closest to the Guidance of the Quran and the Sunnah.

Your Question: ….can we call it as non shariah, if their is no documentation.just on trust we deal.

If one wishes to give or take a loan from a friend based merely on trust, one cannot say such a transaction would be unlawful or against the Laws of Shariah……but if one sincerely fears Allah, wishes to obey and follow His Commands and His Guidance, trusts the Wisdom and the Guidance of Allah and His Messenger (saws) more than he trusts even himself…then it would be best and closest to piety and righteousness that he follow the guidance and document the transaction and take two witnesses.

If one trusts, obeys, and follows the guidance and commands of Allah and His Messenger (saws), one can be assured of never ever being misled; but if one believes, obeys and follows any other guidance, other than that of Allah and His Messenger (saws), one can be assured of being led astray.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan