Giving grace period to a poor debtor

In both Quran and Hadith, much merit has been promised to those who give time to poor debtors. Abu Hurairah has quoted the following saying of the Holy Prophet, upon whom be peace, "He who gives time to a poor man or reduces his debt would be placed by Allah in the shade of His Throne on the day when there shall be no shade." (Tirmidhi, Waqal. Hasan Sahih)

Hadifah has related that the Holy Prophet has said, "The soul of a man from among the earlier Ummahs was taken by the Angel of death. He was asked if he has ever done a good deed. He replied that he had been giving loans and had told his agents to give time to the poor debtors and to treat kindly the well-to-do. Thereupon, Allah the Most High ordered the Angels, "You too should treat him kindly." And thus, he was pardoned.