SURAH AL-BAQARAH: 280 - Part 3

If one compares superficially one would come to the conclusion that the person who gives loans on interest is in a win-win situation. His principal is safe as the borrower is bound to return it under any circumstances even if he has to sell his home, he will take more back than what he had lent in form of interest, and he keeps charging interest on any unpaid principal and interest till he gets all of his money back. On the other hand, Shariah says that one cannot take back more than one has lent, then recommends that if the borrower is in a financially difficult situation give him more time, or completely forego the loan if you can. This way it seems like the person is losing his capital. Then why did Allah Ta'alah say that  this is better for you if you understand?

The reason is that the measures of success are different in both the situations. For the person who sole measure of success is material wealth, increase in numbers is everything. A person who has a million dollars is more successful than a person who only has ten thousand dollars. A person who is a billionaire is more successful than a millionaire. On the other hand, in the eyes of the person whose sole measure of success is seeking Allah Ta'alah's pleasure, true success is to please Allah Ta'alah by giving relaxation to the borrower, by foregoing his loan if the borrower cannot afford to return it, and giving away his wealth in sadaqah, even if to others it appears that his wealth is decreasing.

Adapted from Ma'ariful Quran, by Mufti Muhammad Shafi Rehmatullah Elaih