The Prophet (ﷺ) owed a camel of a certain age to a man who came to demand it back. The Prophet (ﷺ) ordered his companions to give him. They looked for a camel of the same age but found nothing but a camel one year older. The Prophet (ﷺ) told them to give it to him. The man said, "You have paid me in full, and may Allah pay you in full." The Prophet (ﷺ) said, "The best amongst you is he who pays his debts in the most handsome manner."
Hadith Commentary: Loans, Payment of Loans, Freezing of Property, Bankruptcy
This narration from Sahih al-Bukhari 2393 demonstrates the Islamic principles governing debt repayment and the superior conduct expected from believers in financial transactions.
The Excellence of Superior Debt Repayment
The Prophet's instruction to give a camel one year older than what was owed exemplifies the Islamic virtue of going beyond mere obligation in settling debts. This act transforms a financial transaction into an act of worship.
Scholars explain that while fulfilling the exact terms of a debt is sufficient, offering something of superior quality or value earns greater reward and reflects the completeness of faith.
The Creditor's Response and Its Wisdom
The creditor's statement "You have paid me in full, and may Allah pay you in full" demonstrates the proper etiquette for Muslims when receiving repayment. This dua (supplication) acknowledges the fair settlement and invokes divine recompense.
Classical commentators note that this exchange creates a cycle of blessings - the debtor gives generously, the creditor responds with prayers, and Allah multiplies the reward for both parties.
The Prophetic Declaration of Excellence
The final statement "The best amongst you is he who pays his debts in the most handsome manner" establishes a spiritual hierarchy where financial integrity and generosity become measures of spiritual excellence.
Islamic jurists derive from this that while timely repayment is obligatory, embellishing the repayment with extra quality, quantity, or better terms is highly recommended (mustahabb) and indicative of strong character.
Practical Applications in Contemporary Context
This hadith guides Muslims to: repay loans before their due date when possible, choose the best quality in repayment, add extra value voluntarily, and maintain gracious conduct throughout financial interactions.
The principle extends beyond camel transactions to modern banking, business dealings, and personal loans, encouraging believers to exceed minimum requirements in all debt settlements.