The Ruling on Lending Without a Written Contract
Machine translationRead the Arabic original
Question:
Honorable Shaykh, what is the ruling on lending without a written contract, given the small amount of the loan and the trust between the two parties?
Answer:
There is nothing wrong with that, but it is better that if there is no written contract, he takes a pledge.[Al-Baqarah 2:283] In the reading, a pledge that is taken into possession, so that the right is not lost, or forgotten, or denied by the one who owes it. Yes. So the money is not lost and exposed to loss; either he earns and secures it, or a pledge is taken in its place.
Honorable Shaykh, what is the ruling on lending without a written contract, given the small amount of the loan and the trust between the two parties?
Answer:
There is nothing wrong with that, but it is better that if there is no written contract, he takes a pledge.
And if you are on a journey and cannot find a scribe, then a security deposit [should be] taken.
وَإِن كُنتُمْ عَلَىٰ سَفَرٍ وَلَمْ تَجِدُوا كَاتِبًا فَرِهَانٌ مَّقْبُوضَةٌ
Source
شرح بلوغ المرام من أدلة الأحكام [ صالح الفوزان ]، تتمة باب البر والصلة — islamhouse.com (1:09:18)
The Arabic text is a machine transcription of the audio recording.