With prohibition of Interest, Islam has protected the Creditor as well

Islam has not only prohibited paying and receiving of interest, but has also described the
rights and duties of creditors and debtors so as to protect the human beings from any sort
of loss and injustice from each other.
O ye who believe! Fear Allah, and give up what remains of your demand for usury, if
ye are indeed believers. If ye do it not, Take notice of war from Allah and His
Messenger: But if ye turn back, ye shall have your capital sums: Deal not unjustly,
and ye shall not be dealt with unjustly. (Al Quran, 2:278-279)
In the verse No. 279 of the holy Quran along with prohibiting interest, Almighty Allah has
clearly stated that the creditor has every right to claim the principal amount from the
debtor. There should not be injustice with anyone whether rich or poor, creditor or debtor,
borrower or the lender. The collection of following Hadith from Sahih al-Bukhari defines the
guidelines for debtors and borrowers to repay the loan in time, with pure intuition and in
most handsome manner.
Narrated Abu Huraira: The Prophet said, "Whoever takes the money of the people with
the intention of repaying it, Allah will repay it on his behalf, and whoever takes it in order to
spoil it, then Allah will spoil him." (Sahih Al-Bukhari - Volume 3, Book 41, Number 572)
Narrated Abu Huraira: The Prophet owed a camel of a certain age to a man who came to
demand it back. The Prophet ordered his companions to give him. They looked for a
camel of the same age but found nothing but a camel one year older. The Prophet told
them to give it to him. The man said, "You have paid me in full, and may Allah pay you in
full." The Prophet said, "The best amongst you is he who pays his debts in the most
handsome manner." (Sahih Al-Bukhari - Volume 3, Book 41, Number 578)
Narrated Abu Huraira: Allah's Apostle said, "Procrastination (delay) in repaying debts by a
wealthy person is injustice." (Sahih Al-Bukhari - Volume 3, Book 41, Number 585)
The teachings of above Quranic verses and hadith clearly states that
1. Interest is strictly prohibited in Islam, but creditor has right to claim the principal
amount back from the debtor.
2. One cannot take loan with an intention to cheat the creditor or waste the debt.
3. Creditor has right to claim for recovery (even in harsh tone)
4. Debtor has to repay the loan in most handsome manner.
5. Delay in repaying debt by a person having money for repayment is defined as injustice
in Islam, and such persons will not go to paradise unless clear their accounts.
Thats the reason our Prophet Muhammad (SAW) was not used to offer funeral prayer for
the debtors because they are not sure about their success in life hereafter. So, we need to
clear our accounts from debts to be sure for success in life hereafter.