The reward for granting interest fr...

Egypt's Dar Al-Ifta

The reward for granting interest free loans


no. 392 for the year 2010 which includes the following:
We are a charitable organization and one of our activities is to grant benevolent loans to poor people who are able to work. The aim is to help them establish simple projects that would generate income to help them with their living expenses. A sheikh told us that these loans garner half a reward since they are returnable. Consequently, if ten people receive [10] loans, then we our reward is [only] fivefold. Is this true?



The matter depends on the needs of the poor who are able to work. If it is necessary to give one poor person a loan that is large enough for him to establish a project, this is better than giving several poor persons small loans that do not meet their needs. The practice of the salaf[1] (may Allah be pleased with them) was to give sufficient charities. In the case mentioned in the question,  quality takes precedence over quantity. To suffice one poor person is better than to give insufficient charity to several others.  
The ruling
The distribution of these benevolent depends on what you see as being in the best interest of the poor. The reward is commensurate with the fulfilled interests.
Allah the Almighty knows best.

[1] The first three generations of proponents of the religion
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