Debt repayment
| Fatwa #613 | Category: Business & Trade | Country: Zambia | Date: 16th December 2021 |
| Fatwa #613 | Date: 16th December 2021 |
| Category: Business & Trade | |
| Country: Zambia | |
Question
Aslm. I have a question regarding repayment of debt. My brother took a loan from my uncle who stays in UK. At the time wen my brother was given money my uncle was here. The verbal agreement at the time was he was given the money in kwachas to be paid back in kwacha n after that he was given a paper to sign wich he did. This happend in 2014. He has a chance of paying it back Alhumdulillah so wen we looked at the paper we saw wat was written and got some of us confused because of how it was worded n we thought it best we ask wat the sharia ruling is so we proceed accordingly.
The agreement has been attached. If u have any questions for clarification pls do not hesitate to ask.
Wat is the ruling n/or will it b ok if he pays back the kwachas he was given? Jazakallah.
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, a loan is to be repaid in the same currency it was lent it. So, if one was given Kwacha, he should repay in Kwacha when the loan is due.[1]
However, if one had an arrangement wherein one stipulated that though the money is being lent in a certain currency, it will be repaid in another currency and that same day’s currency conversion rate was fixed, this too will be permissible.[2]
You state that the verbal agreement was that Kwacha will be given and Kwacha will be repaid. However, the written agreement you provided states:
“I have borrowed the sum of £5,158 at a rate of K9,872.00 used for K45,000 now and £600 from previously… total amount being K50,920 to be paid over a period of 5 years.”
The written agreement above is ambiguous in nature. Therefore, we propose the following.
- If both parties are happy to settle the debt in kwacha, as was the verbal agreement, then that is the best way forward.
- If there is a dispute between both parties with regards to repayment, then we shall consider the actual money that was lent 5 years ago. Hence, if the individual was actually given only Kwacha, then he should repay in Kwacha. If he was lent pounds instead of Kwacha, he should repay the same amount in pounds.
And Allah Ta’āla Knows Best
Mufti Bilal Pandor
Checked and Concurred By:
Mufti Muhammad Patel
Darul Iftaa Mahmudiyyah
Lusaka, Zambia
بدائع الصنائع في ترتيب الشرائع (7/ 395) [1]
ومنها أن يكون مما له مثل كالمكيلات، والموزونات، والعدديات المتقاربة، فلا يجوز قرض ما لا مثل له من المذروعات، والمعدودات المتقاربة؛ لأنه لا سبيل إلى إيجاب رد العين ولا إلى إيجاب رد القيمة؛ لأنه يؤدي إلى المنازعة لاختلاف القيمة باختلاف تقويم المقومين؛ فتعين أن يكون الواجب فيه رد المثل؛ فيختص جوازه بما له مثل
بحوث في قضايا فقهية معاصرة ص 163-165 [2]