The Messenger of Allah (saws) said to me: When my messengers come to you, give them thirty coats of mail, and thirty camels. I asked: Messenger of Allah, is it a loan with a guarantee of its return, or a loan to be paid back? He replied : It is a loan to be paid back.

"The Messenger of Allah (saws) took a camel of a particular age on loan. He gave back to him a camel of a better age than the one he was given. He said: 'The best among you is the best in repaying.'"

He said: There is something on this topic from Abu Rafi'.

[Abu 'Eisa said:] The Hadith of Abu Hurairah is a Hasan Sahih Hadith. Shu'bah and Sufyan reported it from Salamah.

This is acted upon according to some of the people of knowledge, they saw no harm is taking a camel of a particular age as a loan. This is the view of Ash-Shafi'i, Ahmad, and Ishaq. But some of them disliked that.

Yahya said that he heard Malik speak about someone who pledged goods as security for a loan, and they perished with the broker. The one who took out the loan confirmed its specification. They agreed on the amount of the loan, but challenged each other about the value of the pledge, the pledger saying that it had been worth twenty dinars, whilst the broker said that it had been worth only ten, and that the amount loaned on security was twenty dinars. Malik said, "It is said to the one in whose hand the pledge is, 'describe it.' If he describes it he is made to take an oath on it and then the people of experience evaluate that description. If the value is more than what was loaned on security for it, it is said to the broker, 'Return the rest of his due to the pledger.' If the value is less than what was loaned on security for it, the broker takes the rest of his due from the pledger. If the value is the exact amount of the loan, the pledge is compensated for by the loan."

Yahya said that he heard Malik say, "What is done in our community about two men who have a dispute about an amount of money loaned on the security of a pledge - the pledger claiming that he pledged it for ten dinars and the broker insisting that he took the pledge as security for twenty dinars, and the pledge is clearly in the possession of the broker - is that the broker is made to take an oath when the value of the pledge is fully known. If the value of the pledge is exactly what he swore that he had loaned on security for it, the broker takes the pledge as his right. He is more entitled to take precedence with an oath since he has possession of the pledge. If the owner of the pledge wants to give him the amount which he swore that he was owed, he can take the pledge back. If the pledge is worth less than the twenty dinars he loaned, then it is said to the pledger, 'Either you give him what he has sworn to and take your pledge back, or you swear to what you said you pledged it for.' If the pledger takes the oath, then what the broker has increased over the value of the pledge will become invalid. If the pledger does not take an oath, he must pay what the broker swore to."

Malik said, "If a pledge given on security for a loan perishes, and both parties deny each other's rights, with the broker who is owed the loan saying that he gave twenty dinars, and the pledger who owes the loan saying that he was given only ten, and with the broker who is owed the loan saying the pledge was worth ten dinars, and the broker who owes the loan saying it was worth twenty, then the broker who is owed the loan is asked to describe the pledge. If he describes it, he must take an oath on its description. Then people with experience of it evaluate that description. If the value of the pledge is estimated to be more than what the broker claims it was, he takes an oath as to what he claimed, and the pledger is given what is over from the value of the pledge. If its value is less than what the broker claims of it, he is made to take an oath as to what he claims is his. Then he demands settlement according to the actual value of the pledge. The one who owes the loan is then made to take an oath on the extra amount which remains owing against him to the claimant after the price of the pledge is reached. That is because the broker becomes a claimant against the pledger. If he takes an oath, the rest of what the broker swore to of what he claimed above the value of the pledge is invalidated. If he draws back, he is bound to pay what remains due to the broker after the value of the pledge."

I heard the Messenger of Allah (saws) Said: Allah , Most Exalted, has appointed for everyone who has a right what is due to him, and no will be made to an heir, and a woman should not spend anything from her house except with the permission of her husband. He was asked: Even foodgrain, Messenger of Allah? He replied: That is the best of our property. He then said: A loan must be paid back, a she-camel lent for a time for milking must be returned, a debt must be discharged, one who stands surety is held responsible.

Allah's Apostle said, "A man used to give loans to the people and used to say to his servant, 'If the debtor is poor, forgive him, so that Allah may forgive us.' So when he met Allah (after his death), Allah forgave him."

Yahya said that he had heard Malik say, "The undisputed way of doing things in our community concerning pledges is that in cases where land or a house or an animal are known to have been destroyed whilst in the possession of the broker of the pledge, and the circumstances of the loss are known, the loss is against the pledger. There is no deduction made from what is due to the broker at all. Any pledge which perishes in the possession of the broker and the circumstances of its loss are only known by his word, the loss is against the broker and he is liable for its value. He is asked to describe whatever was destroyed and then he is made to take an oath about that description and what he loaned on security for it. "Then people of discernment evaluate the description. If the pledge was worth more than what the broker loaned, the pledger takes the extra. If the assessed value of the pledge is less than what he was loaned, the pledger is made to take an oath as to what the broker loaned and he does not have to pay the extra which the broker loaned above the assessed value of the pledge. If the pledger refuses to take an oath, he has to give the broker the extra above the assessed value of the pledge. If the broker says that he doesn't know the value of the pledge, the pledger is made to take an oath on the description of the pledge and that is his if he brings a matter which is not disapproved of."

Malik said, "All this applies when the broker takes the pledge and does not put it in the hands of another."

"The Messenger of Allah (saws) prohibited me from selling what was not with me."

[Abu 'Eisa said:] This Hadith is Hasan. He said: There is something on this topic from 'Abdullah bin 'Umar.

Ishaq bin Mansur said: "I said to Ahmad: 'What is the meaning of the prohibition from a loan along with a sale? He said: 'That he gives him a loan and then he makes a sale to him greater then it's actual worth. And, it carries the meaning of him loaning it to him in exchange for something (as collateral), so he says: 'If you are unable to pay it (the loan), the it (the collateral) will be a sale for you.' Ishaq [bin Rahuwyah] said as he said. And I said to Ahmad: 'What about selling what one does not possess?' He said: 'To me it does not apply except in cases of food - meaning one has not taken possession of it.' And Ishaq said the same for all of what is measured or weighed. Ahmad said: 'When he says: "I will sell you this garment, with the condition that I am the tailor for it, and I am the one who bleaches it.' This is an example of two conditions in one sale. But if he says: "I am selling it to you with the condition that I am its tailor," then there is no harm in it. And, if he said: "I am selling it to you with the condition that I am the one who bleaches it" then there is no harm in it, because this is only one condition.' And Ishaq said as he said."

Narrated Abu Huraira

The Prophet said, "A man from Bani Israel asked someone from Bani Israel to give him a loan of one thousand Dinars and the later gave it to him. The debtor went on a voyage (when the time for the payment of the debt became due) but he did not find a boat, so he took a piece of wood and bored it and put 1000 diners in it and threw it into the sea. The creditor went out and took the piece of wood to his family to be used as fire-wood." (See Hadith No. 488 B, Vol. 3). And the Prophet narrated the narration (and said), "When he sawed the wood, he found his money."

The Prophet entered the Mosque, and I too went there after tying the camel at the pavement of the Mosque. I said (to the Prophet ), "This is your camel." He came out and started examining the camel and said, "Both the camel and its price are for you."

Bahira is a she-camel whose milk is kept for the idols and nobody is allowed to milk it; Sa'iba was the she-camel which they used to set free for their gods and nothing was allowed to be carried on it. Abu Huraira said: Allah's Apostle said, "I saw `Amr bin 'Amir Al-Khuza`i (in a dream) dragging his intestines in the Fire, and he was the first person to establish the tradition of setting free the animals (for the sake of their deities)," Wasila is the she-camel which gives birth to a she-camel as its first delivery, and then gives birth to another she-camel as its second delivery. People (in the Pre-lslamic periods of ignorance) used to let that she camel loose for their idols if it gave birth to two she-camels successively without giving birth to a male camel in between. 'Ham' was the male camel which was used for copulation. When it had finished the number of copulations assigned for it, they would let it loose for their idols and excuse it from burdens so that nothing would be carried on it, and they called it the 'Hami.' Abu Huraira said, "I heard the Prophet saying so."

The people used to sell camels on the basis of Habal-al-Habala. The Prophet forbade such sale. Nafi` explained Habal-al-Habala by saying. "The camel is to be delivered to the buyer after the she-camel gives birth."

The Prophet sent a Sariya towards Najd and I was in it, and our share from the booty amounted to twelve camels each, and we were given an additional camel each. So we returned with thirteen camels each.

AbdulAziz ibn Rufay' narrated on the authority of some people from the descendants of Abdullah ibn Safwan who reported the Messenger of Allah (saws) as saying: Have you weapons, Safwan? He asked: On loan or by force? He replied: No, but on loan. So he lent him coats of mail numbering between thirty and forty! The Messenger of Allah (saws) fought the battle of Hunayn. When the polytheists were defeated, the coats of mail of Safwan were collected. Some of them were lost. The Messenger of Allah (saws) said to Safwan: We have lost some coats of mail from your coats of mail. Should we pay compensation to you? He replied: No. Messenger of Allah, for I have in my heart today what I did not have that day.

Abu Dawud said: He lent him before embracing Islam. Then he embraced Islam.

Yahya said that Malik spoke about a man who loaned another man money and then the debtor asked him to leave it with him as a qirad. Malik said, "I do not like that unless he takes his money back from him, and then pays it to him as a qirad if he wishes or if he wishes keep it."

Malik spoke about an investor who paid a man qirad money and the man told him that it was collected with him and asked him to write it for him as a loan. He said, "I do not like that unless he takes his money from him and then lends it to him or keeps it as he wishes. That is only out of fear that he has lost some of it, and wants to defer it so that he can make up what has been lost of it. That is disapproved of and is not permitted and it is not good."

Allah's Apostle sent a Sariya towards Najd, and `Abdullah bin `Umar was in the Sariya. They gained a great number of camels as war booty. The share of each one of them was twelve or eleven camels, and they were given an extra camel each.

In the pre-lslamic period of ignorance the people used to bargain with the meat of camels on the principle of Habal-al-Habala which meant the sale of a she-camel that would be born by a she-camel that had not yet been born. The Prophet forbade them such a transaction.

The Prophet was on a journey and a slave named Anjasha was chanting (singing) for the camels to let them go fast (while driving). The Prophet said, "O Anjasha, drive slowly (the camels) with the glass vessels!" Abu Qilaba said, "By the glass vessels' he meant the women (riding the camels).

While I was riding a (slow) and tired camel, the Prophet passed by and beat it and prayed for Allah's Blessings for it. The camel became so fast as it had never been before. The Prophet then said, "Sell it to me for one Uqiyya (of gold)." I said, "No." He again said, "Sell it to me for one Uqiyya (of gold)." I sold it and stipulated that I should ride it to my house. When we reached (Medina) I took that camel to the Prophet and he gave me its price. I returned home but he sent for me (and when I went to him) he said, "I will not take your camel. Take your camel as a gift for you." (Various narrations are mentioned here with slight variations in expressions relating the condition that Jabir had the right to ride the sold camel up to Medina).

On his father's authority, said that his grandfather 'Abd Allah b. 'Amr reported the Messenger of Allah (saws) as saying: The proviso of a loan combined with a sale is not allowable, nor two conditions relating to one transaction, nor profit arising from something which is not in one's charge, nor selling what is not in your possession.

Allah's Apostle was on a journey and he had a black slave called Anjasha, and he was driving the camels (very fast, and there were women riding on those camels). Allah's Apostle said, "Waihaka (May Allah be merciful to you), O Anjasha! Drive slowly (the camels) with the glass vessels (women)!"

I called on Jabir bin `Abdullah Al-Ansari and said to him, "Relate to me what you have heard from Allah's Apostle ." He said, "I accompanied him on one of the journeys." (Abu `Aqil said, "I do not know whether that journey was for the purpose of Jihad or `Umra.") "When we were returning," Jabir continued, "the Prophet said, 'Whoever wants to return earlier to his family, should hurry up.' We set off and I was on a black red tainted camel having no defect, and the people were behind me. While I was in that state the camel stopped suddenly (because of exhaustion). On that the Prophet said to me, 'O Jabir, wait!' Then he hit it once with his lash and it started moving on a fast pace. He then said, 'Will you sell the camel?' I replied in the affirmative when we reached Medina, and the Prophet went to the Mosque along with his companions. I, too, went to him after tying the camel on the pavement at the Mosque gate. Then I said to him, 'This is your camel.' He came out and started examining the camel and saying, 'The camel is ours.' Then the Prophet sent some Awaq (i.e. an amount) of gold saying, 'Give it to Jabir.' Then he asked, 'Have you taken the full price (of the camel)?' I replied in the affirmative. He said, 'Both the price and the camel are for you.' ''

Allah's Apostle sent us who were three-hundred riders under the command of Abu Ubaida bin Al- Jarrah in order to watch the caravan of the Quraish pagans. We stayed at the seashore for half a month and were struck with such severe hunger that we ate even the Khabt (i.e. the leaves of the Salam, a thorny desert tree), and because of that, the army was known as Jaish-ul-Khabt. Then the sea threw out, an animal (i.e. a fish) called Al-`Anbar and we ate of that for half a month, and rubbed its fat on our bodies till our bodies returned to their original state (i.e. became strong and healthy). Abu Ubaida took one of its ribs, fixed it on the ground; then he went to the tallest man of his companions (to let him pass under the rib). Once Sufyan said, "He took a rib from its parts and fixed it, and then took a man and camel and they passed from underneath it (without touching it). " Jabir added: There was a man amongst the people who slaughtered three camels and then slaughtered another three camels and then slaughtered other three camels, and then Abu 'Ubaida forbade him to do so. Narrated Abu Salih: Qais bin Sa`d said to his father. "I was present in the army and the people were struck with severe hunger." He said, "You should have slaughtered (camels) (for them)." Qais said, "I did slaughter camels but they were hungry again. He said, "You should have slaughtered (camels) again." Qais said, "I did slaughter (camels) again but the people felt hungry again." He said, "You should have slaughtered (camels) again." Qais said, "I did slaughter (camels) again, but the people again felt hungry." He said, "You should have slaughtered (camels) again." Qais said, "But I was forbidden (by Abu 'Ubaida this time).

Malik said, "When a man owes money to another man and he asks him to let it stay with him as a quirad, that is disapproved of until the creditor receives his property. Then he can make it a qirad loan or keep it. That is because the debtor may be in a tight situation, and want to delay it to increase it for him."

Malik spoke about an investor who made a qirad loan to a man, and some of the principal was lost before he used it, and then he used it and made a profit. The agent wanted to make the principal the remainder of the money after what was lost from it. Malik said, "His statement is not accepted, and the principal is made up to its original amount from his profit. Then they divide what remains after the principal has been repaid according to the conditions of the qirad."

Malik said, "Qirad loan is only good in gold or silver coin and it is never permitted in any kind of wares or goods or articles."

Malik said, "There are certain transactions which if a long span of time passes after the transaction takes place, its revocation becomes unacceptable. As for usury, there is never anything except its rejection whether it is a little or a lot. What is permitted in other than it is not permitted in it because Allah, the Blessed and the Exalted, said in His Book, 'If you repent, you have your capital back, not wronging and not wronged. ' "

32.4 Conditions Permitted in Qirad

When Abu Bakr; sent me to (collect the Zakat from) Bahrain, he wrote to me the following:-- (In the name of Allah, the Beneficent, the Merciful). These are the orders for compulsory charity (Zakat) which Allah's Apostle had made obligatory for every Muslim, and which Allah had ordered His Apostle to observe: Whoever amongst the Muslims is asked to pay Zakat accordingly, he should pay it (to the Zakat collector) and whoever is asked more than that (what is specified in this script) he should not pay it; for twenty-four camels or less, sheep are to be paid as Zakat; for every five camels one sheep is to be paid, and if there are between twenty-five to thirty-five camels, one Bint Makhad is to be paid; and if they are between thirty-six to forty-five (camels), one Bint Labun is to be paid; and if they are between forty-six to sixty (camels), one Hiqqa is to be paid; and if the number is between sixty-one to seventy-five (camels), one Jadha is to be paid; and if the number is between seventy-six to ninety (camels), two Bint Labuns are to be paid; and if they are from ninety-one to one-hundredand twenty (camels), two Hiqqas are to be paid; and if they are over one-hundred and-twenty (camels), for every forty (over one-hundred-and-twenty) one Bint Labun is to be paid, and for every fifty camels (over one-hundred-and-twenty) one Hiqqa is to be paid; and who ever has got only four camels, has to pay nothing as Zakat, but if the owner of these four camels wants to give something, he can. If the number of camels increases to five, the owner has to pay one sheep as Zakat. As regards the Zakat for the (flock) of sheep; if they are between forty and one-hundred-and-twenty sheep, one sheep is to be paid; and if they are between one-hundred-and-twenty to two hundred (sheep), two sheep are to be paid; and if they are between two-hundred to three-hundred (sheep), three sheep are to be paid; and for over three-hundred sheep, for every extra hundred sheep, one sheep is to be paid as Zakat. And if somebody has got less than forty sheep, no Zakat is required, but if he wants to give, he can. For silver the Zakat is one-fortieth of the lot (i.e. 2.5%), and if its value is less than two-hundred Dirhams, Zakat is not required, but if the owner wants to pay he can.'