Hadith 38679

Malik said, "When a man owes money to another man and he asks himto let it stay with him as a quirad, that is disapproved of until thecreditor receives his property. Then he can make it a qirad loan orkeep it. That is because the debtor may be in a tight situation, andwant to delay it to increase it for him."Malik spoke aboutan investor who made a qirad loan to a man, and some of the principalwas lost before he used it, and then he used it and made a profit. Theagent wanted to make the principal the remainder of the money afterwhat was lost from it. Malik said, "His statement is not accepted, andthe principal is made up to its original amount from his profit. Thenthey divide what remains after the principal has been repaid accordingto the conditions of the qirad."Malik said, "Qirad loan isonly good in gold or silver coin and it is never permitted in any kindof wares or goods or articles."Malik said, "There arecertain transactions which if a long span of time passes after thetransaction takes place, its revocation becomes unacceptable. As forusury, there is never anything except its rejection whether it is alittle or a lot. What is permitted in other than it is not permittedin it because Allah, the Blessed and the Exalted, said in His Book,'If you repent, you have your capital back, not wronging and notwronged. ' "32.4 Conditions Permitted in Qirad