A Jurisprudential Analysis of the Foundations of the Legitimacy, Preferability, and Reprehensibility of the Loan Contract in Imami Jurisprudence and Iranian Law

Abstract

The loan contract (qarḍ) in Imami jurisprudence and Iranian law, as one of the fundamental financial institutions, is underpinned by a profound three-dimensional conceptual framework that takes into account various aspects of human life. These three dimensions consist of legitimacy (jurisprudential permissibility), preferability (otherworldly and social virtues), and reprehensibility (the adverse consequences and harms associated with unnecessary borrowing). Adopting a descriptive-analytical approach, this article systematically examines these three jurisprudential foundations. The findings indicate that the legitimacy of the loan contract is grounded in the definitive texts of the Qur’an, the traditions of the Infallible Imams (peace be upon them), and rational evidence. The preferability of this institution lies in its otherworldly rewards, its role in preserving human dignity, and its contribution to social solidarity. Conversely, by introducing the concept of “reprehensibility,” the Islamic normative framework warns that unnecessary borrowing may pose a threat to an individual’s inner freedom—as reflected in humiliation during the day—psychological tranquility—as manifested in sorrow at night—and moral well-being. Ultimately, by precisely delineating these foundations, the article provides a theoretical framework for policymakers and legal scholars to facilitate the optimal utilization of the capacities inherent in this institution.