The desire for ownership is an innate instinct with many positive aspects, such as working, seeking to acquire, and safeguarding wealth from loss. However, legislative guidance in this area provides important direction for how an individual should handle wealth in their worldly life to avoid deviating from justice in ownership. This guidance reveals the true relationship between the individual and wealth: that humans are not the ultimate owners but rather stewards of it. This stewardship comes with conditions and rules outlined by various legislations that guide human behavior and social activity. To adhere to these behavioral guidelines, one must internalize the Quranic perspective on wealth and one's relationship to it, as expressed in the verse: "In which He has made you successors" (Quran 57:7).
The Quran prohibits hoarding wealth due to its detrimental effects on society. It encourages the circulation of wealth among as many members of the community as possible: "So that it will not be a perpetual distribution among the rich from among you." (Quran 59:7). Hoarding wealth can be harmful to society as a whole. The negative consequences of wealth concentration in the hands of a few capitalists, as seen in capitalist economic systems, reflect the Quranic objective of encouraging wealth circulation among a broader segment of society. Additionally, the Quran prohibits usury due to its impact on human development and social, economic, and spiritual relationships: "Allah has permitted trade and forbidden interest" (Quran 2:275). Usury exacerbates the concentration of wealth among a small group of capitalists, an issue that the world, including the Islamic community, continues to face today.
Examining the Concept of "Loans"
Secular economic systems impose borrowing with interest to increase the capital of the moneylender. This approach treats borrowing not as a solution to a social problem faced by many people in times of personal or general crises, but as a solution to the moneylender's issue of wanting to grow their capital by any means, including exploiting human need and social vulnerability. Consequently, the social and human relationships that connect members of society are absent from the lender's considerations in the secular economic system. The lender exploits the urgent need for money and imposes conditions for repayment with interest, disregarding the concept of a united community, where if one member suffers, the rest should come to their aid. This is contrary to the Quranic principle for the Muslim community being "They are a [single] structure joined firmly" helping to alleviate each other's crises.
Economists state that the impact of usury on social security is severe: in loans to those in need, the usurer seizes the majority of the low-income earners' gains, who are often workers. Consequently, these individuals struggle to sustain themselves and their families, having spent their days and nights working to earn an income that the usurer appropriates through their laziness and inactivity. This leads to a decline in their moral character, driving them to commit crimes and sins, and deteriorates their standard of living, education, and upbringing of their children, among other personal, social, and national consequences (1).
In the field of productive loans—loans taken out by manufacturers, farmers, and traders to finance their economic activities due to insufficient personal resources to provide the necessary investment funds—the harms of this type of loan become evident. The lender is unconcerned with the borrower's profit or loss, viewing them merely as a debtor. Therefore, the lender does not strive to improve the productivity or performance of the project. Even if the project fails or incurs losses, the lender seeks to recover their money from the remaining scraps of the ruined project. This incorrect approach to capital investment through usurious lending establishes a relationship between capital and real, wealth-producing economic activities based on hostility, animosity, and conflict, which harms the community's economic development and leads to the backwardness of its economic activities (2).
The "Benevolent Loan" in the Quran
The Quran emphasizes the importance of benevolent loans for achieving security and stability within the Muslim community and maintaining the integrity of social relationships. This is highlighted in the verse: "Who is it that would loan Allah a goodly loan so He will multiply it for him and he will have a noble reward?" (Quran 57:11). Other relevant verses include (AL-BAQARAH:245), (Al-Muzzammil:20), (Al-Hadid:18), (At-Taghabun:18), and (AL-MA’IDAH:12).
Al-Razi mentions that a loan is considered "benevolent" if it meets ten criteria (3):
1. It must be from lawful sources: "Indeed, Allah is Good and accepts only what is good."
2. It should be from the best of what one owns: "And do not aim toward the defective therefrom, spending [from that]" (Quran 2:267).
3. It should be given with love and need: "Gives wealth, in spite of love for it," (Quran 2:177).
4. It should be given to those most in need.
5. It should be given discreetly: "but if you conceal them and give them to the poor, it is better for you," (Quran 2:271).
6. It should not be followed by reproach or harm: "Do not invalidate your charities with reminders or injury" (Quran 2:264).
7. It should be intended for the sake of Allah, without showing off: "But only seeking the countenance of his Lord, Most High." (Quran 92:20).
8. It should be considered small even if it is substantial: "And do not confer favor to acquire more" (Quran 74:6).
9. It should be from what you cherish the most: "Never will you attain the good [reward] until you spend [in the way of Allah] from that which you love." (Quran 3:92).
10. It should be given with empathy, not seeing oneself as superior and the recipient as inferior.
Social Benefits of a Benevolent Loan
In light of the ethical and legislative framework surrounding the concept of a "benevolent loan", we can identify a range of social and educational benefits and its applications in contemporary Islamic societies as follows:
1. Reconstructing the Concept of Money and Ownership for the Muslim Individual: The idea of a benevolent loan as presented in the Quran is based on a specific belief regarding money. This Islamic perspective differs from that offered by secular systems. The characteristics of benevolent lending—where the lender does not seek any profit or increase upon repayment (interest)—can only be practiced by those who embrace the Islamic view of money and ownership. This perspective includes the following aspects: ownership belongs solely to Allah, money is Allah's, human ownership of money is merely a figurative arrangement, using money to please Allah by benefiting others, and money is a means rather than an end.
2. Protecting Society from the Effects of Usurious Transactions: A benevolent loan, given that it should not involve any gain or interest, contributes to societal solidarity and prevents the borrower from falling into the hands of usurers—those who offer loans with interest. This protection is crucial because interest-bearing loans can lead to increased debt burdens on individuals, potentially worsening their financial crises and leading to additional problems.
3. Re-establishing Benevolence Among Social Networks: Benevolent loans promote the virtue of benevolence among individuals in society. Wealthy individuals are encouraged to assist those in need by providing what is necessary to meet their demands (through borrowing). This practice contrasts with usury, which undermines benevolent connections between people and can lead to estrangement and ill will between those with wealth and those in need.
4. Culture of Mutual Assistance: The concept of benevolent loans fosters a culture of mutual help and support among people. This is exemplified in practices like "sulf" (in Iraq) or "salam" (in Hijaz), where individuals exchange what they need for mutual benefit and agree to return it once the need is fulfilled.
Surah Al-Ma'un was revealed to condemn those who deny the exchange of essential items that people need. The term "Ma'un" refers to anything that provides benefit. It is a name given to items commonly asked for by both the poor and the rich, and withholding such items is attributed to bad character and meanness. Examples of such items include an axe, a pot, a bucket, a fire starter, a sieve, and a hammer. It also encompasses essentials like salt, water, and fire. This extends to situations like a neighbor asking to bake in your oven or to store their belongings with you for a day or part of a day (4). Some interpretations of "Ma'un" include obligatory alms (zakat), charitable donations, all types of rights, and benefits, as well as God's property that someone asks for but is denied (like a pot or a bucket).
Our community has suffered greatly by substituting benevolent loans with usurious loans, leading to increased poverty, need, and crime. This shift has resulted in divine displeasure and the fulfillment of the divine warning: "Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity." (Quran 2:275), and "Allah destroys interest and gives increase for charities" (Quran 2:276).
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(1) Mahmoud Aref Wahba: "Evaluation of Usury," Contemporary Muslim Journal, Issue 25, January 1981, p. 78.
(2) Same reference, p. 80.
(3) Al-Razi: "Mafatih al-Ghayb" (Keys to the Unseen), Vol. 29, p. 222.
(4) Refaat Al-Sayed Al-Awadhi (Editor): "Encyclopedia of Islamic Economics," Vol. 1, p. 361.
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