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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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Guaranteeing a borrowed item if it is destroyed in the borrower's possession

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Question:
Honorable Shaykh, may Allah grant you success. A questioner says: If a Muslim borrows something from someone, and the borrowed item is destroyed, what is obligatory for him? Is he required to return its equivalent?

Answer:
A loan (‘ariyah) is not guaranteed unless there is a condition. If it is conditioned that it is a guaranteed loan, then he guarantees it. But if there is no condition, the loan is not guaranteed. Yes.
Source شرح كتاب المنتقى من أخبار المصطفى صلى الله عليه وسلم، بداية من باب الصلح عن دم العمد بأكثر من الدية وأقل — islamhouse.com (1:16:58)

The Arabic text is a machine transcription of the audio recording.

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