What is the ruling on refusing to lend money to friends and relatives who do not repay their debts, even though I have the money?

A goodly loan (Qard Hasan) is one of the best acts of obedience and greatest acts of nearness to Allah, especially for those in need. The Shari'ah encourages leniency towards the one in difficulty. The borrower must repay the debt when he is able. The Prophet (peace be upon him) warned against the wealthy person procrastinating in repayment. A loan is recommended, not obligatory, and there is no sin upon one who withholds it. However, a capable person misses out on much good by doing so. This good should not be foregone unless it is highly probable that the borrower will not repay the loan.