Outstanding Debt
Pillars of Islam
Asked on 20th November 2020
Question
اَلسَلامُ عَلَيْكُم وَرَحْمَةُ اَللهِ وَبَرَكاتُهُ Dear Shaykh, Do have query with regard to Loan . A person owe some amount to a Bank , Unfortunately unable to pay the full due to loss of employment. In this scenario is it liable to repay the full outstanding ? Second scenario if the bank agrees on settlement and remaining amount write off what will be the Islamic ruling on theses two . Niyyah is to repay in full. But current circumstances don’t willing . Appreciate your kind feedback on the above . جزاك الله خيرًا
Answer
Wa'alaykumsalaam Wa Rahmatullah Wa Barakaatouh.
It all depends upon the contract made at the beginning of the deal.
A loan is meant to be repaid back. If someone has lost his job, it's all down to the lender to see how he can eases the payment. If he insists that the full payment needs to be paid, then it has to be paid.
if he is facilitating that it can be given in installments without interest, then this is fair.
If the lender decided to write off the remaining, this is good on his part.
but as for you as a borrower, you need to comply with the contract rules and regulations.
Allah knows best,
Please do get back to me if ever this answer is not satisfied by incase in case i have misunderstood your question.
Shukran
It all depends upon the contract made at the beginning of the deal.
A loan is meant to be repaid back. If someone has lost his job, it's all down to the lender to see how he can eases the payment. If he insists that the full payment needs to be paid, then it has to be paid.
if he is facilitating that it can be given in installments without interest, then this is fair.
If the lender decided to write off the remaining, this is good on his part.
but as for you as a borrower, you need to comply with the contract rules and regulations.
Allah knows best,
Please do get back to me if ever this answer is not satisfied by incase in case i have misunderstood your question.
Shukran