Moneylenders, Borrowers, Creditor, and Debtors
Settlement of Debts
The Lender's Obligations

Moneylenders, Borrowers, Creditor, and Debtors

Interest constitutes the price paid for using someone else's money. The interest for such loans should be reasonable. Charging exorbitant interest rates is morally unjust.
A person creating a debt – be it a loan, credit purchase, or any other type of debt – knowing that they would not be able to repay the debt, is committing a moral offense. Therefore, before committing oneself, a person should ensure realistically and honestly that they are able to repay the loan on time.

A loan should not be taken for the purpose of gambling, or for any questionable transactions, or based on misrepresentations, or on "thin financing" – without having adequate personal equity.

It is improper to pressure a person to lend money to another, especially for business purposes. Not everyone who seems to be able to lend money can do so. Don’t embarrass people or put them to shame, and don’t ask twice if you have been refused the first time.

All financial commitments should be documented in details and signed by all sides concerned in order to avoid misunderstandings, innocent or intentional.

Settlements of Debts

The borrower's commitment to the moneylender to settle their debt in full and on time is primarily a moral obligation.

The borrower should settle the debt without the lender having to ask for it or take steps to enforce it.

The borrower must make their utmost to repay the debt, even to the point of lowering their standard of living but without withholding the basic necessities of life from their family and dependents.

If the borrower is unable to repay the loan in full, they must repay it in installments, as best as they can.

If the borrower owns property that can be liquidated in order to repay the debt, it is only proper for them to do so.

The Lender's Obligations

Don’t lend money if doing so will cause you financial difficulties.

Don't lend money for improper purposes. If you do, you are an accessory to an offense.

Consider the borrower's circumstances and don’t charge interest rates that are usury and constitute exploitation of their plight. In this context, don’t accept as collateral anything that when liquidized, would be detrimental to the borrower.

Don’t call in a loan before the agreed date of payment.

Inability to repay a loan is not considered fraudulent; it is possible that unforeseen circumstances caused the inability to repay.

The lender or their representatives must examine whether the debtor has fraudulently become insolvent. If the borrower acted honestly and in good faith, the creditor should accept it at face value and extend the terms of repayment, or forego part of the loan, or arrive at some other fair arrangement.

A debtor who has fallen on hard times and is doing their best under the circumstances should not be intimidated or persecuted for their troubles.

The debt collection procedure must be carried out while maintaining human dignity and liberty. Don’t humiliate, traumatize, or shame the debtor as this achieves no useful purpose.

Whatever the case may be, the collection procedure should not affect the standard of living of the debtor and the people dependent on them. They should be able to maintain a modest and reasonable standard of living, similar to the one they had before the proceedings began.

Never appropriate items that would deprive the debtor of their basic needs such as: food, equipment or furniture, or such items that will not help to repay a substantial part of the debt.

Don’t evict a person from their dwelling before arranging an alternative appropriate place for that person and their dependents for a period as would be determined based on the debtor's personal circumstances and earning abilities.

Collect your loan in legal ways only. If you are forced to initiate legal proceedings, don’t be unduly harsh and heavy-handed.

Don’t humiliate the debtor, don’t shout at them and don’t discredit their reputation.

Don’t shame a person in front of their family or others.