Question : As name of Gift, can pay amount of loan ? Zaid has given loan to a friend Asif. After few months, zaid wanted to have a new mobile but he can't because of financial issue. He told to Asif abt it and Asif not wanted to break his friend's heart. So Asif told to Zaid to present him a new mobile as Eid Gift. And zaid accepted it. But after sending gift to Zaid, Asif said that he had paid his loan what he borrowed. My question is, in this case, whether Asif's loan has been paid or not?? Because Asif given to Zaid a new mobile of same amount of loan, but as name of gift.

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and messenger.

The debt is not paid back in this manner.  It is not valid to give this gift as payment of the debt, because the repayment of a debt is fulfilled by paying back exactly what was borrowed or paying what is equivalent to it. 

As regards giving in return other objects that are different than what was borrowed, then this should be done by both parties' agreement that the debt is paid back as such.  However, this did not happen between the two parties as per your question.

Allaah Knows best.