Sections
Chapter on the Rulings of Loans

Linguistically, a loan (qard) means “cutting,” because the lender “cuts off” a portion of his wealth and hands it to the borrower.
In the sacred law, it is defined as transferring property to someone so that he may benefit from it and then return its equivalent.
A loan is an act of benevolence, and the Prophet ﷺ called it a maniha (a bestowed favor), for the borrower enjoys its use and later restores it to the lender.

Granting loans is recommended and brings immense reward. The Messenger of Allah ﷺ said, “No Muslim grants another Muslim a loan twice except that it counts for him as one act of charity,” narrated by Ibn Mājah.

Some scholars have even held that extending a loan is superior to giving charity, for only a person in need seeks a loan. In the sound ḥadīth, the Prophet ﷺ declared, “Whoever relieves a Muslim of one of the hardships of this world, Allah will relieve him of a hardship from the hardships of the Day of Resurrection.”