The Ruling on Lending from an Orphan's Property

Question:
My father has been the guardian of an orphan's rights for sixteen years. This right includes gold and other grains and jewelry. My father used to lend to those in need, and they would return it in full. If anything was missing, my father would complete it from his own funds. When the orphan reached maturity, my father handed over all of his rights to him. Was my father right in what he did, and is his conscience clear?

Answer:
May Allah keep you in good health, as long as he returned his rights, and whatever was missing, he completed it from his own funds; then he is in a good state, if Allah wills.
As for lending, and the fact that he lends gold, silver, and money, this is a matter of consideration. If the lending is for dire necessity and pressing need, and there is no risk to it; then there is no blame on him -if Allah wills- in doing good; because Allah condemns those who withhold lending. He said: [Surat al-Ma'un:7] condemning them.
So lending is what is prescribed, and withholding lending is from the withholding of those who withhold. If he lends from the orphan's property what benefits people and does not harm the orphan, and then if a loss occurs; he completes it, and adds to it from his own self; then there is no blame on him -if Allah wills- this is if the lending has no risk to it. But if the lending has a risk to it; then he does not lend unless he is a guarantor, just as the questioner did.