Record-keeping of Loans is Compulsory in Islam

[M H Kahn]

:sl:
We often transact loans with our friends, relatives and others; but we don't write down the transactions. We generally think that if we, as lenders, wish to write write down the transactions, the borrowers will take it to heart; and actually it happens. But as ordained in the Quran, we have to compulsosrily write down the transactions, as Allah says:

"O you who believe, when you transact a loan for any period, you shall write it down. An impartial scribe shall do the writing. No scribe shall refuse to perform this service, according to GOD's teachings. He shall write, while the debtor dictates the terms. He shall observe GOD his Lord and never cheat. If the debtor is mentally incapable, or helpless, or cannot dictate, his guardian shall dictate equitably. Two men shall serve as witnesses; if not two men, then a man and two women whose testimony is acceptable to all. Thus, if one woman becomes biased, the other will remind her. It is the obligation of the witnesses to testify when called upon to do so. Do not tire of writing the details, no matter how long, including the time of repayment. This is equitable in the sight of GOD, assures better witnessing, and eliminates any doubts you may have. Business transactions that you execute on the spot need not be recorded, but have them witnessed. No scribe or witness shall be harmed on account of his services. If you harm them, it would be wickedness on your part. You shall observe GOD, and GOD will teach you. GOD is Omniscient.[2:282]

If you are traveling, and no scribe is available, a bond shall be posted to guarantee repayment. If one is trusted in this manner, he shall return the bond when due, and he shall observe GOD his Lord. Do not withhold any testimony by concealing what you had witnessed. Anyone who withholds a testimony is sinful at heart. GOD is fully aware of everything you do.[2:283]

[M H Kahn]

As Allah has made it compulsory for us to keep records of every loan transaction with one person writing the transaction and two or three persons witnessing it, we have to abide by this divine order to earn Allah's satisfaction. We have also to remind others of the divine ordainment when we find them transacting any loan; and in that case, the person reminding the necessity of recording-keeping will be rewarded, too, by Allah.

[IbnAbdulHakim]

jazakAllah khair, this is something i didnt know of :eek: