Q. I loaned people a lotta money. Friends, family, everyone. They take forever to pay me back but they have money for better cars than me, awesome houses, luxury weddings …  sometimes, I get my money after 5 years. It’s really frustrating. Does one have to loan people? If Allah has given me wealth, do I have to become a bank?

A.1) If one does not wish to give a loan to anyone, they need not do so. However, Shari’ah has outlined that if one is blessed with wealth, and if one’s parents, and other close family members, seek help, we should be willing to give a helping hand – provided we have the capacity to do so. The help should be for necessities, and in areas of need, not greed!

A.2) One should draw up a contract with an appropriate set of witness when giving out a loan, so as to minimize further hassles. As Allah states:

O you who believe! when you deal with each other in contracting a debt for a fixed time, then write it down; and let a scribe write it down between you with fairness; and the scribe should not refuse to write as Allah has taught him, so he should write; and let him who owes the debt dictate, and he should be careful of (his duty to) Allah, his Lord, and not diminish anything from it; but if he who owes the debt is unsound in understanding, or weak, or (if) he is not able to dictate himself, let his guardian dictate with fairness; and call in to witness from among your men two witnesses; but if there are not two men, then one man and two women from among those whom you choose to be witnesses, so that if one of the two errs, the second of the two may remind the other; and the witnesses should not refuse when they are summoned; and be not averse to writing it (whether it is) small or large, with the time of its falling due; this is more equitable in the sight of Allah and assures greater accuracy in testimony, and the nearest (way) that you may not entertain doubts (afterwards), except when it is ready merchandise which you give and take among yourselves from hand to hand, then there is no blame on you in not writing it down; and have witnesses when you barter with one another, and let no harm be done to the scribe or to the witness; and if you do (it) then surely it will be a transgression in you, and be careful of (your duty) to Allah, Allah teaches you, and Allah knows all things.

(2:282)

A.3) If Allah has blessed with you with profound wealth, and/or a generous heart, then the following Hadith can be used for solace. Sayyidina Hudhaifa reports that Rasulullah (Sallallaahu alayhi wa sallam) said:

Before your time the angels received the soul of a man and asked him, ‘Did you do any good deeds (in your life)?’ He replied, ‘I used to order my employees to grant time to the rich person to pay his debts at his convenience.’ So Allah said to the angels; “Excuse him.” Rabi said that (the dead man said), ‘I used to be easy to the rich and grant time to the poor.’ Or, in another narration, ‘grant time to the well-off and forgive the needy,’ or, ‘accept from the well-off and forgive the needy.’

(Bukhari Volume 3, Book 34, Number 291)

A.4) In no way are we sanctioning that people intentionally pay back loans in a time-delayed fashion. To do so intentionally is oppression (zulm) and Allah does not like oppressors.

Allah certainly knows best.