(1) Do not borrow from such a person who is unable to refuse inspite of not being disposed to lend. Whether it be Qardh or Aaryah do not borrow from him if by some signs or indications you are able to discern that he is not well-disposed to lend. (Qardh is a loan of cash. Aaryah is an item which is borrowed for a short while.) If it is a person whom you know will not regard it onerous or difficult to give the loan or he may regard it onerous but is one who will not readily refuse, then a loan may be sought from him.
(2) As far as possible avoid taking a loan. If circumstances compel you to obtain a loan, be concerned about repayment. Do not adopt an uncaring attitude regarding repayment.
(3) If the creditor rebukes or speaks harshly to the debtor, the latter (i.e. the debtor) should adopt Sabr and listen on in silence. The creditor has the right to rebuke his debtor for default of payment.
(4) If you owe anyone anything, be it cash borrowed or an article borrowed, make a note of it as a wasiyyat (directive) so that one’s heirs will know what to do in the event of one’s death.
(5) When repaying a debt, make a dua as well for the creditor and express your gratitude.
(6) If the debtor is in difficulty, the creditor should not pressurize him. He should happily consent to an extension. If the creditor is by the means he should waive the debt or part of the debt for a hard-pressed debtor. There is a tremendous amount of thawaab for waiving debts. Allah Ta’ala will further lighten the hardships of Qiyaamah for one who waives debts.
(7) There is greater reward for granting a loan than for giving charity. Consider it, therefore, as an act of goodness and good fortune to give a needy person a loan.
(8) If the debtor is unable to pay and he wishes to make arrangements with another person to assume liability for payments, then readily agree to this arrangement. Do not unnecessarily refuse this arrangement if there is reasonable hope for payment to be forthcoming. Such an arrangement is known as Hawaalah in islam. There is much thawaab in it.
(9) Poor and needy persons should not keep in trust (as amaanat) any articles of others. It is quite possible that in their moments of need the nafs overwhelms them and they make use of the article or sell it.
(10) When obtaining a loan, keep a record of it and when making payment, then too.
(11) Taking a loan is indeed a very lamentable act. If one dies without having liquidated the debt, the rooh (soul) remains suspended, entry to Jannat being blocked.
(12) Loans and debts should not be incurred for the acquisition of items of luxury. Exercise patience and be contented with what you possess. Rasulullah (sallallahu alayhi wasallam) said: “To ask is disgraceful.” One who does not detest debt is an unscrupulous person. A debtor who deliberately neglects to pay his debt is a very selfish person. He transfers his burden onto another and then adopts a careless attitude.
(13) The act of postponing payment when one is by the means to pay is an act of zulm (injustice). Some people have the evil habit of causing the creditor to run to and fro. They attempt to avoid payment by making false promises and tendering excuses while they are in position to pay. In the discharge of the right of the creditor they are just not bothered.