Hazrat Shaikh Moulana Muhammad Zakariyya (rahmatullahi ‘alaihi) once mentioned that it is essential when one takes a loan that he pays back the loan on the appointed time. In the beginning, my close friends would lay down strict conditions before giving me a loan (which I needed in order to pay for my deceased father’s debts). Thereafter, after a short period of time when the creditors were confident regarding my paying back the loan on time, they did not hesitate in giving me a loan. It is mentioned in a hadeeth that when a person takes a loan with a firm intention of paying back the loan upon the appointed time, then Allah Ta’ala’s divine assistance will be with such a person. On the converse, if a person takes a loan and casually says that he will see if he can pay or not, then he will not be able to settle even a small debt.
Remember this principle! When taking a loan, the responsibility of settling the debt is on the debtor and not for the creditor to pursue him. (Malfoozaate Hazrat Shaikh 1/24)