The Islamic Perspective on Taking Loans: Guidelines from the Quran and Sunnah

 The permissibility of taking a loan in Islam is supported by several references in the Quran and Sunnah.

In the Quran, Allah says in Surah Al-Baqarah, Verse 275:

"Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest."

This verse highlights the prohibition of interest or riba in Islam. However, it also emphasizes the permissibility of trade and commerce, which can involve borrowing and lending money.

Furthermore, the Prophet Muhammad (peace be upon him) himself borrowed money on several occasions and also encouraged others to lend to those in need. In a hadith narrated by Abu Hurairah, the Prophet (peace be upon him) said:

"Whoever relieves a believer's distress of the distressful aspects of this world, Allah will rescue him from a difficulty of the difficulties of the Hereafter. Whoever alleviates [the situation of] one in dire straits who cannot repay his debt, Allah will alleviate his lot in both this world and in the Hereafter." (Sahih Muslim)

This hadith highlights the importance of helping those in need, including those who are in debt and struggling to repay it. It also indicates that Allah rewards those who assist others in their time of need.