الإيضاح (Jun 2018)
"اسلامى بىنکارى مىں تنگدست مقروض سے وصولیابی کے شرعی اختیارات Sharia'h Compliant Loan Recovery Strategies From Insolvent Debtors in Islamic Banking "
Abstract
"Islam lays emphasis on social justice and sharing of resources between the haves and the have-nots. In order to create such a balanced socio-economic environment, the inter-class lending is considered to be a way forward ethical activity. Qard is a gratuitous contract in which one gives a certain homogeneous wealth to other against the condition of returning of similar value of wealth upon demand or after termination of payback period. As per Sharia'h, the Qard should not bring any return or benefit for the lender because that would be equivalent to Ribâ. Therefore the lender cannot charge or demand any extra amount against the extension on the payback period awarded to the poor borrower. Furthermore, Islam considers the difference between debtors who default by procrastination and those who default by necessity. The Holy Qur'an, in principal, recommends having compassion for the poor barrowers and giving them the grace period till they have the capacity to payback. In such scenario the Muslim lenders perceive that the Islam has set unilateral direction in favor of borrowers only. Therefore the lenders feel that they are handicapped or helpless and found themselves in a strangled situation. This study is designed to solve the dilemma of lenders and explore risk mitigation strategies in case of insolvency of borrowers. The verses from the Holy Qur'an & Hadith of the Messenger (PBUH) and also work of prominent Sharia'h Scholars were considered to form a comprehensive guideline to mitigate the lender’s risk. Hence it has been proved that the Islam has given legal rights to the lender and allows some practical recovery strategies & tactics to recover the funds from the underprivileged borrowers. This study will play a key role in risk mitigation for default and late payments."
