Firstly, sadqah is a general term for everything that a person gives in the way of goodness to help those in need and seek the pleasure of Allah. It includes what is given as an obligation, such as the obligatory Zakat, and what is given voluntarily, such as being kind to orphans. So, sadqah is a general term for both obligatory and recommended acts of giving. Allah says in the Quran, “Charity is only for the poor and needy, and those employed to administer it, ..” the verse (At-Tawbah 9:60). In this verse, Allah mentions the eight categories of Zakat, which is obligatory upon those who have reached the nisab of wealth and are free from debt.
– Sadqah can be given in material things such as money, food, and clothing, as well as in spiritual matters such as good manners. The Prophet (peace be upon him) said, as narrated by Abu Dharr, “Your smiling in the face of your brother is charity, commanding good and forbidding evil is charity, giving directions to a lost person is charity, helping the blind person is charity, your removing a stone or thorn or bone from the road is charity, and your pouring what remains from your bucket into the bucket of your brother is charity.” This hadith was narrated by Al-Bukhari in Al-Adab Al-Mufrad, by At-Tirmidhi, and by Ibn Hibban.
– Charity can also be in actions that benefit others, as previously mentioned, such as giving Zakat and assisting the needy. It can also be in actions that benefit the doer. This is what was mentioned in the noble hadith narrated by Ahmad in his Musnad and by Ibn Hibban in his Sahih, from Abu Dharr that the Prophet (peace be upon him) said, “Even in your sexual relations with your spouse, there is a charity.” The companions asked, “O Messenger of Allah, could any one of us fulfill his sexual desire and get rewarded for it?” The Prophet (peace be upon him) replied, “Do you not see that if he had sex with her in an unlawful manner, he would be punished? So, if he has sex with her in a lawful manner, he will be rewarded.”
– Charity can be given openly or in secret, as Allah says in the Quran, “If you disclose your charitable expenditures, they are good; but if you conceal them and give them to the poor, it is better for you” (Al-Baqarah 2:271). The Prophet (peace be upon him) also mentioned that there are seven types of people who will be shaded by Allah on the Day of Judgment, one of whom is a person who gives charity in secret, to the extent that their left hand does not know what their right hand has given.
– Charity can be categorized into two types in terms of reward: either it is limited or continuous. The limited type is where the doer is rewarded for their act of charity once, regardless of whether the reward is small or great. The continuous type of charity, on the other hand, is where the reward continues for as long as the charity continues to benefit others. Examples of continuous charity include endowments (awqaf), charity for education, and other similar initiatives.
Secondly, there is the concept of “Qard al-Hasan” or benevolent loans:
It is a compound term consisting of a quality and a description. The loan is a sum of money that is given by one person to another, with the understanding that it will be returned. The loan is also a type of good deed that is expected to be rewarded.
– The loan can be given either in-kind or in-cash. If it is given in-kind, it is called “Aariyah,” which means lending something like a book or a tool on the condition that it will be returned in good condition. The borrower is responsible for returning the item in the same condition, and if it is damaged, they must compensate the lender for the loss. If the loan is given in-cash, the borrower is required to repay the exact amount borrowed, without any additional interest. If you lend someone one hundred dollars, they must repay one hundred dollars, regardless of any changes in the value of money.
A loan should be given with the intention of its return, and it is recommended to document the loan and have witnesses present, as Allah says in the Quran, “O you who have believed, when you contract a debt for a specified term, write it down” (Al-Baqarah 2:282). The Prophet Muhammad (peace be upon him) also mentioned in a hadith recorded by Al-Hakim in his Mustadrak and authenticated by him, on the authority of Abu Musa Al-Ash’ari, that “there are three types of people whose supplications are not answered by Allah: a man who has a wife of bad character and does not divorce her, a man who has a debt owed to him but does not have witnesses to testify to it, and a man who gives his wealth to an ignorant person.” Allah says, “And do not give the foolish your wealth” (An-Nisa 4:5).
– Adding a good deed (Hasanah) to a benevolent loan requires the following conditions:
• The loan should be free from any form of interest or increase.
• The loan should not cause harm or inconvenience to the borrower.
If the lender intends to seek reward from Allah for their act of benevolence, there is an additional condition:
• The loan should be purely for the sake of Allah, not for showing off or seeking reputation.
– Adding a benevolent loan to Allah, as mentioned in the Quranic verse “Who is it that would loan Allah a goodly loan?” (Al-Baqarah 2:245), has been a subject of debate among scholars either its literal or metaphorical. Some argue that the verse should be taken literally, meaning that the lender expects a reward in return for their loan, just as it is the borrower’s duty to repay the loan. They believe that it is Allah’s obligation to reward and compensate the lender. Others argue that since the money belongs to Allah, it is only attributed to humans as an honor and elevation, and the act of lending is metaphorical.
There is a difference of opinion among scholars as to which is better: giving charity or lending money. There are two hadiths that mention the virtue of each act over the other:
– Narrated by Ibn Masud (may Allah be pleased with him), the Prophet (peace be upon him) said, “Any Muslim who lends to another Muslim twice it is as if he had given charity once.” This hadith is recorded in the collections of Ibn Majah and Ibn Hibban, and it indicates the virtue of charity over lending.
– Anas (may Allah be pleased with him) reported that the Messenger of Allah (peace be upon him) said, “I was taken on a night journey (Isra’) and was shown the door of Paradise through which the charity enters. I saw that the reward for charity is ten times its value, and for a loan, it is eighteen times its value. I asked Jibril (Gabriel), ‘Why is a loan better than charity?’ He said, ‘Because the beggar may beg again, but the borrower will repay it, and the borrower is more in need than the beggar.'” This hadith is recorded in the collections of Ibn Majah and Al-Bayhaqi, and it highlights the virtue of lending.
And Allah knows best.
Fatwa by Dr. Khālid Naṣr