Hazrat Umar Bin Shoiab reported from his father who reported from his father that Rasool Allah salla allahu ta’ala’alayhi wa sallam said,”Whoever recited “Subhan Allah” 100 times in the morning & evening, it will be like he had performed 100 Hajj.And whoever recited “Allhamdo Lillah” 100 times in the morning & 100 times in the evening it will be like he gave 100 horses as charity in the path of Allah ta’ala.He who recited “La Ilaha Illal Laah” 100 times in the morning & 100 time in the evening it will be like he has freed 100 Slaves from amongst the children of Hazrat Ismail alaihis salaam.He who recited “Allah O Akbar” 100 times in the morning & 100 times in the evening, then no-one will be able to do more good deeds than him on that day, other than he who recited the same amount or more.”(Mishkaat, Vol2, page 346)

Payment of Wages

The wages of a labourer and the hire of a thing rented should be paid up before the sweat of the labourer dries up or the term for the payment of the hire expires. Sayyiduna Abu Hurayra (radi Allahu anhu) reported that the Messenger of Allah (sallal laahu alaihi wasallam) said: “The Almighty Allah said, “There will be three persons whose opponent I shall become on the Resurrection Day: A man who gave in My name and then broke trust, and a man who sold a free man and enjoyed his price, and a man who engaged a labourer and enjoyed full labour from him but did not pay him his wages.”


Debt implies want and all creatures including men are in want of something or the other. Man should extend his helping hand to his brother who is in want, irrespective of his seeking it or not.

This may be done in two ways: Loan with condition of repayment or gratuitous loan without any compensation, or gift. Islam, however, does not recognize loan with interest. It recognizes only gratuitous loan called “Qarz-e-Hasanah”. The Holy Quraan and Hadith speak of great merits in Qarz-e-Hasanah. It is a loan without compensation or interest for benefit of the debtor. The Holy Quraan says: “If you offer to Allah a gratuitous loan, He will double it for you and forgive you.” (64:17) “Surely (those who) extend a gratuitous loan to Allah, it shall be doubled for them, and they shall have a noble reward”. (57:18) “Who is there that will extend to Allah a good loan, that He may double it for him, and he may have an excellent reward?” (57) “Who is it that will offer to Allah a good loan, so He will multiply it to him manifold? And Allah straitens and amplifies, and to Him you will return.” (2:245)

Islam lays special emphasis against indebtedness of men in general and Muslims in particular. The principle is applicable to all nations and states.

Generally Neglected Debts

The following are some of the neglected debts to which men attach little importance:

  1. Dower-debt: It is a debt of the husband as consideration of his marriage. It is just like other bonafide debts. Other creditors cannot take property given to a wife in lieu of dower.
  2. Dues of Co-Sharers: This specially happens in cases of females who are generally deprived of their due and legitimate shares in paternal property. No account among several co-owners of a property or business is regularly kept in majority of cases. This is suicidal from a secular and religious point of view.
  3. Dues of Servants and Slaves: These dues should be paid as early as possible. The Holy Prophet (sallal laahu alaihi wasallam) said: “Give the labourer his dues before his sweat dries up.”
  4. Debts of Honour: These are presents of those who gave them at the time of marriage or other ceremonies in expectation of return on similar occasions.

The following formalities must be observed in a loan:

  1. It must be put in black and white.
  2. The scribe is to write according to the dictates of the debtor himself, or if he is unsound or minor, of his guardian.
  3. There shall be at least two witnesses to the transaction.
  4. There should be clear mention of time when the loan will be repaid. The Holy Quraan says to this effect: “O you who believe! When you deal with each other in contracting a debt for a fixed time, write it down and let a scribe between you write down with fairness.” (2:282)

Duties of Creditors

As Islam lays special stress towards satisfaction of debts and loans, it does not forget to regulate the duties of creditors towards debtors. The debtors who are unable to pay should be shown absolute leniency; and in fit cases, the entire debt should be remitted.  The Holy Quraan says: “And if the debtor is in straitness, then let there be postponement until he is in ease, and if you remit it as alms, it is better for you if you know.” (2:280)

Sayyiduna Abu Hurayra (radi Allahu anhu) reported that the Holy Prophet of Islam (sallal laahu alaihi wasallam) said: “There was a man who used to give loan to the people. He used often to say to his son, “When you come to a needy man, grant him remission, so that Allah may remit us (of sins)”. He said that he then met Allah and He granted him pardon.” (Agreed)

Sayyiduna Abul Yassar (radi Allahu anhu) reported: “I heard the Messenger of Allah (sallal laahu alaihi wasallam) saying, “Whoso grants respite to a debtor or grants him remission, Allah will give him shade under His Shade”. (Muslim)

Sayyiduna Abu Qetadah (radi Allahu anhu) reported that the Messenger of Allah (sallal laahu alaihi wasallam) said: “Whoso gives respite to a debtor or grants him remission. Allah will save him from the calamities of the Resurrection Day.” (Muslim)

Sayyiduna Abu Hurayra (radi Allahu anhu) reported that a man demanded of Rasoolullah (sallal laahu alaihi wasallam) for repayment of a loan and was greatly harsh to him. His companions were about to attack him, but he said: “Leave him, as the creditor has got a demand. Buy a camel for him and give it to him.” They said: “We don’t but find senior to it in years.” He said: “They buy it and give it to him, and verily the best of you is he who is the best of you in repayment of loan.” (Agreed)


The Islamic law of Insolvency is that the creditors can take possession of everything of the debtor except his person, which is free from being molested or sent to prison. There is no civil prison in Islam for a debtor, as by imprisonment the loan cannot be realized owing to the insolvent’s possessing no property of any kind. If a man sells a thing to a man on credit, and the purchaser becomes insolvent, the buyer can take hold of the exact property sold to him, if it was not consumed before-hand. If, however, no identical property is found, it will not be lawful for a creditor to take possession of his entire property to the exclusion of others.

Usury and Interest

The Holy Quraan says: “Believers! Fear Allah and waive what remains outstanding of usury, if you are truly believers. If you do not, then take notice that you are at war with Allah and His Messenger (sallal laahu alaihi wasallam). If you repent, you may have only your principal loans, neither inflicting nor suffering injustice.” (2: 278,279)

The Quraanic verse is clear in requiring a lender to get back only what he has advanced. (It takes into account all usury, regardless of the extent; whether nominal or exorbitant.) The Holy Prophet of Islam (sallal laahu alaihi wasallam) has disapproved of selling two measures of low quality dates for one measure of high quality dates, because he considered that as usury. He told his companions to do each transaction separately for cash, so that there is no element of usury in the deal.

Usury means an addition over and above the principal thing lent. In other words, it is excess, according to legal standard of measurement and weight, in one of two homogenous articles in which such excess is stipulated as an obligatory obligation on one of the contracting parties. Usury includes all kinds of interest whether the rate is high or low and whether the interest is or not added to the principal sum after fixed periods.

The following are, therefore, the ingredients of usurious transactions:

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Interest on Bank deposits

In interest-infected countries, interest from hostile non-Muslims or from those non-Muslims whose avowed object is to destroy the Muslims whenever opportunity arises is quite legal. What is true of non-Muslim individuals is true also of non-Muslim Banks and organizations.

Mortgage and Pawn

Mortgage literally signifies detaining a thing on any account whatsoever. In the language of law, it means detention of a thing on account of a claim, which may be satisfied by means of that thing in case of default. This is unanimously legal. Sayyidah Ayesha (radi Allahu anha) reported that Allah’ s Messenger (sallal laahu alaihi wasallam) purchased food-grains from a Jew up to a fixed term, and he kept his coat of mail of iron in pawn. (Agreed)

Mortgage is established by declaration and acceptance and confirmed by receipt of the pledge. Upon the pawnee taking possession of the pledge, the contract becomes binding. The pawnee is responsible for the pledge. The pawnee is entitled to detain the pledge until he receives payment of debt. The pawner cannot reclaim the pledge on the plea of selling it for discharge of his debt. According to Imam-e-A’zam Abu Hanifa (alaihir rahmah), a pawnee is not authorized to sell the pledge unless with the desire of the pawner. The pawnee is not entitled to use the mortgaged property except in exchange of paying rents.


Usurpation in its literal sense means forcibly taking a thing from another. Usurpation is unlawful. Any person knowingly and willfully usurping the property of another is held to be a criminal and a sinner, and therefore, he becomes liable for compensation. Forcible possession is oppression in an extreme form of which there is a strong condemnation both in the Holy Quraan and Hadith.

Sayyiduna Salem (radi Allahu anhu) from his father reported: “Whoso extorts any portion of land unjustly will be sunk down unto seven earths on the Resurrection Day”. (Bukhari)

Sayyiduna Yah’li Bin Murrah (radi Allahu anhu) reported: ‘I heard Rasoolullah (sallal laahu alaihi wasallam) saying, Whoso encroaches upon a land without title therein will be put to near the burden of its earth on the Congregation Day. (Ahmad) Same reported: ‘I heard the Messenger of Allah (sallal laahu alaihi wasallam) saying, Whoso takes a span of land by oppression, the Glorious and Almighty Allah will give him the trouble of digging it till he reaches the last of the seven earths, and then he will be thrown down till the Resurrection Day till he will be brought for judgment among men.” (Ahmad)

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