Quran Garden

Session 311

Chapter 2

Verse 282

a continuation

You who believe, when you contract a debt for a stated term, put it down in writing: have a scribe write it down justly between you. No scribe should refuse to write: let him write as God has taught him, let the debtor dictate, and let him fear God, his Lord, and not diminish the debt at all. If the debtor is feeble-minded, weak, or unable to dictate, then let his guardian dictate justly. Call in two men as witnesses. If two men are not there, then call one man and two women out of those you approve as witnesses, so that if one of the two women should forget the other can remind her. Let the witnesses not refuse when they are summoned. Do not disdain to write the debt down, be it small or large, along with the time it falls due: this way is more equitable in God’s eyes, more reliable as testimony, and more likely to prevent doubts arising between you. But if the merchandise is there and you hand it over, there is no blame on you if you do not write it down. Have witnesses present whenever you trade with one another, and let no harm be done to either scribe or witness, for if you did cause them harm, it would be deviancy on your part. Be mindful of God, and He will teach you: He has full knowledge of everything. (Chapter 2: Verse 282)

Religion came to organize the people’s affairs in a just manner.  Islam aims to support the basic needs of the poor and preserve the society as a whole.  A poor person in need can get help in one of three ways: First is charity –or Sadaqa- where money is freely given to help.  Second is the religious obligation of Zakat almsgiving.  And third, a loan can be extended where money is given with the expectation of repayment.   

We had mentioned before that the reward for giving a loan is higher than the reward for giving to charity.  This is despite the fact that when you give to charity, you completely let go of the money, while when you lend, you eventually get your money back.  The scholars explained that when you give to charity, you feel the pain of letting go of your money once, and then forget about it.  On the other hand, when you lend, you keep thinking about your money; you anticipate repayment and worry about missed and late payments.  The more patience you exhibit, the higher the reward you attain.   

Let’s take a few moments to study the transactions of charity, Zakat, and loans from two perspectives.  First, let’s look from the perspective of the wealthy.  The primary goal of regulating these transactions is to protect the wealth and property of the rich and assure their continued investment in society.  Had Islam allowed interest earnings, the wealthy would not invest in any projects; they would leave their money in the bank to earn interest, or they would exploit the poor through predatory lending.  Had Islam left loans unregulated, without guarantees to preserve capital, a rich person may hold on to his or her money for fear of loss.  The lack of regulation would also bring the entire economy to a halt.  By outlawing interest and imposing Zakat almsgiving on savings, Islam encouraged investment.    

Take the example of a man who has a large sum of money saved.  If he leaves this money uninvested –and not earning interest-, he would have to pay the Zakat almsgiving annually.  No one likes to see their wealth decrease.  If he invests the money, he would not have to pay Zakat on the working capital.  Thus, this man starts thinking about ways to invest.  He decides to construct a small apartment building to rent out.  He dreams and calculates how much he will receive each month in rental income.  He may only be thinking of earning a profit for himself; however, by starting the project, this man would benefit many members of the society.  Before he earns a single penny, he would have to hire and pay an architect, an engineer, a project manager, many laborers, carpenters, blacksmiths, plumbers, and others.  Impoverished members of the society will benefit from this man’s money before he does.   

The second perspective we should consider is that of the poor.  Allah guaranteed their wellbeing by encouraging work, encouraging charity and obligating Zakat almsgiving.  Allah also legislated and regulated interest-free lending.  The legislation is designed to protect the borrower from him or herself.  How, you may ask? We answer that if you borrow money, and the loan is documented and witnessed by people you trust, you would not slack on repayment.  The loan document and the society as a whole act as an incentive for you to work, produce and repay.  This too, assures a vibrant economy.  If, on the other hand, you take the responsibility of the loan lightly, and start procrastinating, you would hurt yourself and the society.  A rich person would say: ‘look at my friend, he lent so and so money and never got it back, I will never lend my money to anyone.’  Every poor person would suffer from the action of a few who discard their responsibilities. 

Thus, we find that Allah, the All-Wise, had emphasized and then reemphasized the necessity of proper documentation of a loan.  The Arabic word for ‘to write down’ is ‘Kataba.’  When you examine the Arabic text of verse 282 of ‘The Cow,’ you will find that the root Kataba is repeated nine times.  The emphasis on writing down and documenting the loan transaction is designed to protect people’s affairs.  A written document does not forget and does not change its mind under pressure.  God says: ‘Do not disdain to write the debt down, be it small or large, along with the time it falls due: this way is more equitable in God’s eyes, more reliable as testimony, and more likely to prevent doubts arising between you..’