Permissibility of showing kindness to a non-Muslim and lending him money

Praise
be to Allah

Firstly:

Lending money and showing kindness in financial terms comes
under the general heading of dealing justly and kindly that the Muslim is
keen to attain in his interactions with Muslims and others, as Allah, may He
be exalted, says (interpretation of the meaning):

“Allâh does not forbid you to
deal justly and kindly with those who fought not against you on account of
religion nor drove you out of your homes. Verily, Allâh loves those who deal
with equity.

It is only
as regards those who fought against you on account of religion, and have
driven you out of your homes, and helped to drive you out, that Allâh
forbids you to befriend them. And whosoever will befriend them, then such
are the Zâlimûn (wrong-doers those who disobey Allâh)”

[al-Mumtahanah 60:8-9].

Shaykh Ibn ‘Uthaymeen said:

With regard to the non-Muslim, there is nothing wrong with
dealing with him in a just and kind manner, on condition that he is not one
of those who fight against us an account of our religion or who drives us
out of our homes, because Allah, may He be exalted, says (interpretation of
the meaning):

“Allâh does not forbid you to
deal justly and kindly with those who fought not against you on account of
religion nor drove you out of your homes. Verily, Allâh loves those who deal
with equity.

 [al-Mumtahanah 60:8].

End quote from Tafseer Soorat al-Baqarah (2/294).

Allah, may He be exalted, has mentioned among the qualities
of the righteous who are the people of Paradise that they (interpretation of
the meaning) “give
food, in spite of their love for it (or for the love of Him), to Miskin (the
poor), the orphan, and the captive”
[al-Anfaal 8:76], and
the “captive” cannot be anyone but a non-Muslim.

See also the answer to question no.
129664.

Secondly:

If a Muslim comes on the Day of Resurrection and he owed
anything by a non-Muslim, Allah will settle the score between them in full,
for the Day of Resurrection is the Day of due requital and justice. Allah,
may He be exalted, says (interpretation of the meaning):

“And We shall set up balances of
justice on the Day of Resurrection, then none will be dealt with unjustly in
anything. And if there be the weight of a mustard seed, We will bring it.
And Sufficient are We to take account”

[al-Anbiya’ 21:47].

The Prophet (blessings and peace of Allah be upon him)
explained that the settling of scores between those who are accountable will
be done by taking some of the good deeds (hasanaat) of the one who did wrong
(and adding them to the account of the one whom he wronged), and if he has
no hasanaat to his credit, some of the bad deeds (sayyi’aat) of the one whom
he wronged will be taken and added to his account, as is narrated in a
saheeh report from Abu Hurayrah (may Allah be pleased with him), according
to which the Messenger of Allah (blessings and peace of Allah be upon him)
said: “Whoever wronged his brother with regard to his honour or anything
else, let him seek his forgiveness today, before there comes a Day when
there will be no dinar and no dirham, and if he has any righteous deeds to
his credit, they will be taken from him, commensurate with the wrong that he
did, and if he does not have any good deeds to his credit, some of the bad
deeds of his companion will be taken and added to his burden.” Narrated by
al-Bukhaari (2269).

As the disbeliever has no good deeds to his credit, some of
the bad deeds of the one who was wronged will be taken from his account,
commensurate with the wrong that was done to him, and will be added to the
burden of the one who wronged him, then he will be thrown into Hell – we
seek refuge with Allah.

If a Muslim loses money with him in this world, this comes
under the heading of calamities that expiate sins, and if he bears it with
patience, he will attain great reward for that.

And Allah knows best.