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20. Loan (Qarḍ)

Giving a loan to believers, especially the needy among them, is one of the recommended (mustaḥabb) acts that has been highly advised in traditions. For example, it has been reported that the Most Noble Messenger (Ṣ) said, ‘Whoever gives a loan to his brother in faith and gives him respite until he is financially able to repay it, his wealth will increase and angels will send mercy upon him until the time he takes his money back.’ And it is reported that Imam al‑Ṣādiq (ʿA) said, ‘Every believer who gives another believer a loan with the intention of attaining proximity to Allah, Allah will record for him the reward of giving alms to the poor (ṣadaqah) until he takes his property back.’

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  • Ruling 2301

    If the lender stipulates a condition that he will take back more than he gives – for example, he gives 10 kilograms of wheat and stipulates that he will take back 11 kilograms, or he gives ten eggs …

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  • Ruling 2302

    Giving interest (ribā), just like taking interest, is unlawful, but the loan itself is valid. Someone who takes a usurious loan becomes the owner of it but the lender does not become the owner of the extra that …

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  • Ruling 2303

    If a person acquires wheat or something similar through a usurious loan and cultivates it, he becomes the owner of the resulting produce.

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  • Ruling 2304

    If a person purchases some clothing and afterwards pays for it with money acquired through usury or with lawful money mixed with such money, he becomes the owner of it and there is no problem in him wearing …

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  • Ruling 2305

    If a person gives an amount of money to someone so that someone else in another city takes a lesser amount on his behalf, there is no problem. This is called ‘ṣarf al‑barāt’ [a type of bill of …

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  • Ruling 2306*

    If a person gives something to someone so that he may take a greater amount in another city, and if the item is gold, silver, wheat, or barley which can be weighed or measured, it is usury and …

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  • Ruling 2307

    If a person is owed by someone a commodity that is neither weighed nor measured, he can sell it to the borrower or someone else for a lower price and take the sum immediately. Therefore, in present times, …

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