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The virtue of giving a loan

Question

Could you mention a Hadith which states the virtue of giving someone a loan?

 

Answer

1) Sayyiduna Anas ibn Malik (radiyallahu ‘anhu) reports that Rasulullah (sallallahu ‘alayhi wa sallam) said:

β€œOn the night of Mi’raj, I saw written at the gate of Jannah, ‘Charity brings a tenfold reward and a loan brings an eighteen fold reward.’ I said: ‘O Jibril! Why is a loan better than charity?’ He replied, ‘Because the beggar asks when he has something, but the one who asks for loan does so only because he is in need.'”

(Sunan Ibn Majah, Hadith: 2431, Zawaid Ibn Majah, Hadith: 809 and Faydul Qadir, Hadith: 4385)

 

This Hadith is corroborated and suitable to quote. See here.

 

There are other Hadiths which explain that charity is better than loans. Due to this, ‘Allamah Munawi explains, ‘The reward of a loan and the reward of charity will depend on the individuals, their circumstances and the times. Thus, every situation will be viewed individually. Sometimes charity is better, other times giving out a loan is more rewarding.”

(Faydul Qadir, Hadith: 4177)

 

2) Sayyiduna ‘Abdullah ibn Mas’ud (radiyallahu ‘anhu) reports that Nabi (sallallahu ‘alayhi wa sallam) said:

“Every loan is charity.” [i.e. A person will be rewarded for giving a loan just as he is rewarded for giving charity]

(Al Mu’jamul Awsat, Hadith: 3522, Al Mu’jamus Saghir, Hadith: 402. Refer: Faydul Qadir, Hadith: 6335)

 

‘Allamah Mundhiri (rahimahullah) has declared the chain sound (hasan).

(Targhib, vol. 2 pg. 40. Also see: Majma’uz Zawaid, vol. 4 pg. 126)

 

And Allah Ta’ala Knows best.

 

Answered by: Moulana Suhail Motala

 

Approved by: Moulana Muhammad Abasoomar