It is permissible to take loans of items which could be replaced, such as dry groceries, eggs, meat, etc. It is not permissible to take loans of items which are difficult to replace (i.e. it is difficult to obtain an exact replica of the item) such as, guavas, oranges, goats, fowls, etc.
At a time when 10 kilos of wheat was being sold for R10, you borrowed 5 kilos. Thereafter, the price of wheat dropped and 20 kilos of wheat began to be sold for R10. You will still have to give 5 kilos and not more. Similarly, if the price rises, you will still have to give 5 kilos.
When the person returned the wheat that he had borrowed from you, he gave you wheat of a higher quality. It is permissible to accept this wheat and it is not regarded as interest. However, at the time of borrowing the wheat it is not permissible to say that you will take wheat that is of a higher quality. It should be remembered that the wheat should not be more in weight. If you take wheat that is more in weight than the one that you had given, it will not be permissible. You must weigh the wheat properly and give it. If slightly more is given (as a precaution), it will be overlooked.
You borrowed money or some grains on the promise that you will return it within one month or fifteen days and the person accepted this promise. Even then, mentioning this period will not be considered. In fact, it is not permissible to mention any period. If the person who lent the money or grains needs the same and asks for it, or asks for it without even really needing it, you will have to return it.
You borrowed two kilos of wheat, flour or something else. When the person asked for it, you replied: "I do not have any wheat at the moment. In place of that wheat take R2." The person agreed to take the money instead. In such a case, the money will have to be handed over to the person there and then. If the person goes into the house in order to bring the money and separates from the person, this agreement will become invalid. He will have to repeat the entire agreement with regard to taking the money instead of the wheat.
It is the custom in certain homes that one house may borrow five cooked rotis (bread) now, and later when they make their rotis (bread), they return them. This is permissible.
PASSING OVER OF DEBTS TO SOMEONE ELSE
You owe money to Shafiah while Rabiah owes you money. Shafiah asked you for the money which you owe her. You reply: "Rabiah is owing me some money. Take the money which I owe you from her and do not ask me." If Shafiah agrees to this there and then, and Rabiah also agrees to this, then you are absolved from the responsibility of your debt to Shafiah. Shafiah cannot ask you for the money; she will have to ask Rabiah, irrespective of when she receives the money. Furthermore, the money that you have asked Shafiah to collect from Rabiah, you cannot claim that amount from Rabiah. However, if Rabiah is owing you more than what you were owing Shafiah, you can claim the balance from Rabiah. If Rabiah pays the money to Shafiah, well and good. But if she did not pay and passes away, then Shafiah will be paid after selling all her (Rabiah's) personal belongings. If Rabiah did not leave behind any wealth or possessions or, while she was alive she denied owing you any money, took an oath that she owes no money to you, and there are no witnesses in this regard as well, then in such a case Shafiah can ask you for the money that you owe her and can also demand it from you.
If in the very beginning you ask Shafiah to take the money from Rabiah and she does not agree, or Rabiah herself is not happy about giving the money to Shafiah, then this debt has not fallen off your shoulders (i.e. you are still responsible to pay Shafiah her money).
Rabiah was not owing you any money. However, you passed on your debt (money which you were owing to Shafiah) to Rabiah. Rabiah accepted this and Shafiah also agreed. Even in such a case your debt to Shafiah will be passed over to Rabiah and she will be responsible to fulfil it. Therefore, all the above-mentioned rules will also apply over here. After fulfilling the debt on your behalf, Rabiah can claim that money from you. However, she does not have the right to claim that money before she can fulfil it on your behalf.
You had kept some money with Rabiah as an amanah. You therefore passed over your debt (money which you were owing to Shafiah) to Rabiah. Thereafter, that money which was with Rabiah got lost or disappeared in some way or the other. Rabiah is no longer responsible. Instead, Shafiah will demand the money from you and take it from you. Now she has no right to demand or take the money from Rabiah.
If you pass over your debt to Rabiah and thereafter you yourself fulfil this debt and pay the money to Shafiah, this will be valid. Shafiah cannot refuse to accept the money from you and insist on taking it from Rabiah.
THE DETESTATION OF TAKING CREDIT UNNECESSARILY
Hadith One:
Abu Said radiyallahu anhu narrates that he heard Rasulullah sallallahu alayhi wa sallam saying: "I seek refuge in Allah from kufr and debts." A person asked: "O Rasulullah! Do you regard kufr and debts to be equal that you are mentioning them together?" He replied: "Yes."
Hadith two:
Abdullah bin Umar radiyallahu anhu narrates that Rasulullah sallallahu alayhi wa sallam said: "Debts is the flag of Allah on earth. When He wishes to disgrace anyone, He burdens him with the weight of debts."
Hadith three:
Abdullah bin Umar radiyallahu anhu narrates that he heard Rasulullah sallallahu alayhi wa sallam advising a person in the following manner: "Reduce your sins so that your death will be easy. Reduce your debts so that you may live a free person."
Hadith Four:
Abu Hurayrah radiyallahu anhu narrates that Rasulullah sallallahu alayhi wa sallam said: "Allah will fulfil the debts of a person who takes on credit with the intention of fulfilling his debt. Allah will destroy the person who takes on credit with the intention of not paying it and cheating people."
Hadith Five:
a’ishah radiyallahu anha narrates that Rasulullah sallallahu alayhi wa sallam said: "I will help the person who is involved in debts and thereafter makes every effort to fulfil them, but passes away before he can fulfil them."
Hadith Six:
Maymun Kardi narrates from his father (who is companion of Rasulullah sallallahualayhi wa sallam) that Rasulullah sallallahu alayhi wa sallam said: "The person who marries a woman with mahr, whether it be a small amount or a large amount, and has this intention that he will not pay her the mahr and passes away without paying her, then on the day of judgement he will rise as an adulterer in the presence of Allah. And the person who takes a loan with the intention of not paying it back and passes away without fulfilling it, will rise as a thief in the presence of Allah on the day of judgement."
Hadith Seven:
Umar bin Shurayd narrates from his father (who is a Sahabi) that Rasulullah sallallahu alayhi wa sallam said: "The delaying of a person who is able (to pay his debts) makes his honour and wealth halal."
In other words, if a person is able to fulfil his debts and yet does not do so, then his creditors can disgrace him, speak ill of him, announce his dishonesty in his transactions, and when possible, they can claim back their rights either openly or in secret.
Hadith Eight:
Abu Dhar radiyallahu anhu narrates that Rasulullah sallallahu alayhi wa sallam said: "Allah abhors three persons:
an old man who is an adulterer.
a poor person who has a lot of pride.
a rich oppressor (who oppresses his creditors by delaying in paying his debts)."