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:

Dear Learned Sir,

Please help me out here.

The issue is.

A relation of mine wants some money to do his daughters wedding. As he is short of money he is planning to go to a commercial bank and ask for a loan by keeping his land as a securaty.

As this deal is harm in Islam one of my friend said that he will lend the money to my relation.

The quastion which I want to ask is how can my friend ask his money back from my relaton.

1. Can he ask for monthly payments like the bank.

2. How can he ask his profit for giving this money.

3. If my relation wants 60 months to settle the amount how do my friend go with this.

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Take loan on interest from friend

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.

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Allah Says in the Holy Quran Chapter 3 Surah Ale-Imraan verses 130-132:

130 O ye who believe! Devour not ‘riba’ doubled and multiplied; but fear Allah; that ye may (really) prosper.

131 Fear the Fire which is prepared for those who reject faith.

132 And obey Allah and the Messenger; that ye may obtain mercy.

Allah Says in the Holy Quran Chapter 30 Surah Rome verse 39:

39 That which ye lay out for ‘riba’ through the property of (other) people will have no increase with Allah: but that which ye lay out for charity seeking the Countenance of Allah (will increase): it is these who will get a recompense multiplied.

Allah Says in the Holy Quran Chapter 2 Surah Baqarah verse 276:

276 Allah will deprive ‘riba’ of all blessings, but He will give increase for deeds of charity: for He loveth not creatures ungrateful and wicked.

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took ‘riba’, those who paid it, those who recorded it, and those who refused to give sadaqah.

It is neither the taking of a loan or a debt, or the paying of a loan in installments by itself which is prohibited in Shariah….what is categorically forbidden and prohibited in Islam is the increase (riba) that is demanded or paid on the actual loan amount.

Q-1:Can he ask for monthly payments like the bank.

If one gives another a loan of say $10,000.00 and has an agreement with the debtor that the loan will be repaid in a monthly installment in 10 months of $1,000.00 each, there is absolutely no harm. But if the one who gives the loan demands, or the debtor pays even $1.00 more than the original loan amount of $10,000.00, that would then be considered an element and manifestation of the abomination of ‘riba’!

Q-2: How can he ask his profit for giving this money.

If the one who is borrowing the money intends to invest the borrowed money into a business, then the one who loans the money may, if he so wills and pleases, make an agreement with the debtor before the loan is given that he would like to share in the profit and/or loss of that investment according to a pre-agreed percentage. If both parties come to such an agreement, there is absolutely no harm in such a lawful trade transaction.

But if the friend is borrowing the money for his daughter’s wedding or any other expense, there is no question of a trade, or a profit or a loss. Thus for the person who lends the money to demand, or for the person who borrows the money to offer any increase on the original loan amount would be a manifestation of the abomination of ‘riba’.

Your Question: If my relation wants 60 months to settle the amount how do my friend go with this.

If the lender and the borrower come to an agreement that the borrower will settle the debt in 10 months, or 60 months, or even 600 months….provided there is no increase demanded or offered to the original loan amount, there is absolutely no harm.

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