(Part 1)The principles of loan transactions are clearly defined in Islam

📜 Introduction: Surah Al-Baqarah (2:282) contains the longest verse in the Quran, commonly known as "Ayat al-Dayn" (The Verse of Debt). This verse provides comprehensive guidance on financial transactions, including writing contracts, appointing witnesses, and maintaining honesty and transparency in business dealings. 🕊️ Reason for Revelation (Shan-e-Nuzool): According to Ibn Abbas (RA) and other commentators, this verse was revealed when disputes over financial matters began to occur among Muslims. One of the Companions faced confusion in a credit transaction, so Allah revealed this verse to guide believers in how to deal with loans and credit-based agreements properly — in writing and with witnesses — to avoid conflicts.
📚 Tafseer (Explanation in Summary): If you take a loan for a specific time, write it down. A just scribe should write it, and he should not refuse. The debtor should dictate the contract and speak the truth. If the debtor is weak or unable, then a guardian should dictate justly. Bring two male witnesses, or one man and two women (so if one forgets, the other reminds). Do not pressure the scribe or witnesses. Do not become weary of writing down small or large transactions until their due date. If it is immediate trade, then there’s no blame if you don’t write it, but having witnesses is still better. Do not conceal testimony — those who do are sinful at heart. And remember: Allah knows all that you do. ✅ Summary: This verse emphasises the importance of recording financial agreements — especially loans — in writing, with clear terms and reliable witnesses. It promotes accountability, honesty, and justice in economic dealings. By doing so, Islam aims to prevent disputes, ensure transparency, and build trust in society.






 

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