QUESTION 1

One of the doctrines from AI-Hadith mentioned that Prophet (pbuh) says: Avoid borrowing, for it is the cause of shame during the day and worries at night. And if no means for repayment exists, borrowing then is forbidden, because it is clear cheating....

Based on the hadith, you are required to answer the following questions.

1. Argue whether a Muslim is allowed to borrow money? (6 Marks)

b.Explain THREE (3) social problems related to money borrowing that will lead to economic problems. (6 Marks)

QUESTION 2

Malaysian Budget 2021 has decided to extend the moratorium policy to reduce the burden of the borrowers due to Covid-19 pandemic. However, the extension will stretch the tenure of financing.

1. In Islam, man is not encouraged to live in debts. Discuss how does the above situation allowable from shariah view. (4 Marks)
2. Based on the above policy, identify any possible risks that the banks might face and explain THREE (3) ways to mitigate those risks. (6 Marks)