The Importance of Keeping a Record of Loans Given or Received

Hazrat Moulana Ashraf Ali Thaanwi (rahimahullah) once mentioned the following:

One important principle, among the other principles which I adhere to in my life, is that I keep a separate notebook for the purpose of recording debts. Whichever person I give a loan to, I record his name in the notebook together with the loan amount given to him.

Those people who take loans from me and give me a receipt as proof of the loan, then I keep the receipt safe, and when they settle the loan amount, I return the receipt to them.

If people repay the loan in instalments, then my habit is that in their presence, I write the amount repaid in the notebook with the word “received” and show it to them saying, “Look, I have recorded in my book ‘received’ for the amount you have paid.”

There is great benefit in this practice, as both parties have peace of mind. When anything is carried out according to principles, then it will never lead to doubts and worries. However, in today’s times, people have regarded not upholding principles to be good character and piety.

(Malfoozaat Hakeemul Ummat 1/69-70)