Islam's Response to Contemporary Issues — Page 195
Economic Peace 195 Time does not permit me to dwell on the need to wage a war against hunger to which end the prevention of food wastage is an important stepping-stone. Nonetheless, I shall briefly refer to this subject later. Borrowing Money As far as borrowing money for the basic necessities of life is concerned, Islam strongly and repeatedly propounds that loans for exigencies and emergencies be without interest. Those with means should help those who need financial assistance. It is also clearly laid down that if the debtor is unable to return the loan in due time because of his straitened circumstances, he must be granted a greater period of grace. Close relatives may assist a debtor. Debts can be recovered from a deceased person’s estate. Zakat can also be used to alleviate the financial obligations of one burdened with debt. If the rich can write the loan off, it would be better still in the sight of God. Nevertheless, a debtor who can afford to return the loan must fulfil his promise in repaying the loan within its appointed term and should add an ex- gratia amount thereon. This is not, however, obligatory nor predetermined since it would then fall under the broad definition of interest. The Holy Quran teaches: