SHARIA PERSPECTIVE ON THE LEGITIMACY OF DEBT: CORE PRINCIPLES AND CONSIDERATION

Abstract

 The paper examines the practical costs and principles of the Islamic Shariah system, emphasizing its deep roots in the Quran and Hadith. Debt, a concept as old as human civilization, is neither new nor unique among Muslims. The Quran in its wisdom does not explicitly justify the existence of debt but clearly leads to its validity through verses. These classifications fall into two categories: those that present costs in a positive way, and those that provide specific cost decisions. In the first category, the Qur'an defines debt as a praiseworthy act rendered to Allah, often described as "Qarzi hasana" or a good loan This concept is related to the concept of charity and altruism if it’s a wonderful thing. For example, in Surah Al-Baqarah (2:245), believers are invited to lend money to Allah in the best possible manner, promised abundant rewards and heavenly bounty. According to Imam Razi’s interpretation, this debt includes both compulsory and voluntary charity, and reflects a spiritual dimension in which the act of charity is linked to the final return of Allah. Other important mentions are in Surah al-Maidah (5:12), which mentions a covenant with the Israelites, including establishing prayer, paying Zakat, believing in the Prophets and repaying a good loan to Allah This means that it includes obligatory religious duties also comes with the great benefit of voluntary financial support. The scholar Tabari interprets this positive debt as financial support for jihad and other noble causes, which is further emphasized by the verse calling for the support of the Prophets. Surah Al-Hadeed (57:11, 57:18) reaffirms Allah’s promise of divine abundance and honor for the borrowers.