Al-Baqara 2:280

If the debtor is in hardship, give him respite until it is easy for him to pay back. But if you waive it as charity[171], that is better for you, if only you knew.

[171] Allah’s Messenger (ﷺ) said: "A man used to give loans to the people, and used to say to his servant, ‘If the debtor is poor, forgive him, so that Allah may forgive us.’ When he met Allah (after his death), Allah forgave him." [Sahih al-Bukhāri: 687]

And if someone is in hardship, then [let there be] postponement until [a time of] ease. But if you give [from your right as] charity, then it is better for you, if you only knew.

280. And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay, but if you remit it by way of charity, that is better for you if you did but know.[77]

[77] (V.2:280) Narrated Abu Hurairah رضي الله عنه: Allâh’s Messenger صلى الله عليه وسلم said; "A man used to give loans to the people, and used to say to his servant, ‘If the debtor is poor, forgive him, so that Allâh may forgive us.’ So when he met Allâh (after his death), Allâh forgave him." (Sahih Al-Bukhâri, Vol. 4, Hadîth No.687).

And if the debtor is in straitened circumstances, then (let there be) postponement to (the time of) ease; and that ye remit the debt as almsgiving would be better for you if ye did but know.