Taking a loan and not repaying it

Question

Question: Zayd and Bakr had a friendly and brotherly relationship. When Bakr was in difficulty, Zayd, out of sympathy, gave him eight hundred and fifty rupees as a loan (qard), but now Bakr has flatly refused to return this money. All the while the money was with Bakr, Zayd kept paying zakat on it as well. (1) Will the prayer or worship of Bakr and his father be accepted or not? (2) If Bakr dies without having repaid the money, what is the ruling of the Shari‘a? (3)

Answer

(1) If one took a loan compelled by need and hardship, and also intended to repay it, then according to the Shari‘a this is no fault or sin. But thereafter to refuse to return the loan is not right. Yes, this can be done: if there is nothing available now to repay it, a respite may be sought. But to usurp another’s money altogether is a grave sin.

Source: Fatawa Mahmudiyya

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