Riba in west

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amir011

New Member
Salam aleykum
I only have a question about how muslims in the west can do when there is no islamic bank in the country. Is it allowed to borrow money to buy a house or to put ure salary in ure bank account even if it is riba in the bank? Cuze there is no option in most western countries so is it still haram with riba? and if yes then what are we supose to do with the salary and houses and so?
 
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weakslave

Junior Member
:wasalam:

This has been brought up many times before, but inshaAllaah we can help you out.

Using riba-banks:

http://islamqa.com/en/ref/22392

Taking out loans to purchase a property or product:

http://islamqa.com/en/ref/39829

Alhamdulilah Islaam is very clear on the loans with riba matter, and it should be taken seriously. Riba or interest is one of the most warned against sin and we should not take that fact lightly.

Interest is destructive and will cause your wealth to deteriorate. Without a doubt Allaah will not bless your wealth if you partake in interest, and you may find that your wealth simply "falls through the cracks". For a man to live in a modest apartment or house, paying a monthly rental fee is 100% halal. If you have the money to buy a house lawfully then that is 100% halal. But why is it that we must pay more just to have the status of owning a house??

I want you to check this out:

http://www.tcalc.com/tvwww.dll?CalcLoan?Cstm=fundadvice&tmplt=simpleloan.htm

You see how destructive loans are. If you take out a 100,000$ loan for 30 years, paying 600$ monthly, by the end of 30 years you would have paid more than double!

Go to your local bank, get some figures if you wish. Unless you can afford payments of $8,000/month you will end up paying interest equivalent to the amount you borrowed! Why not live in a modest place, save that money and put it to better use in the future?

Avoid Riba/Interest like the plague. In fact, interest is worse than the plague.

And Allaah knows best.
 
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amir_al_shahid

Junior Member
Im happy to hear u have good options in america but unfortunatly i never heard of those banks were i live (sweden) so i still am confused cuze u cant ceep ure money at home after every salary that would not be smart or safe and to put them in to a bank account means u get riba, anyone in the west who can share with us how u deal with this situation? cuze for those live in muslim countries the situation is different and they would not realy understand the situation...
 
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weakslave

Junior Member
amir_al_shahid said:
Im happy to hear u have good options in america but unfortunatly i never heard of those banks were i live (sweden) so i still am confused cuze u cant ceep ure money at home after every salary that would not be smart or safe and to put them in to a bank account means u get riba, anyone in the west who can share with us how u deal with this situation? cuze for those live in muslim countries the situation is different and they would not realy understand the situation...
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Riba cannot be used as charity for buildings, food, clothing or any essential matter. There only a few things that you can do with the riba earned from the bank:

1. throw the money away. literally.
2. buy cleaning supplies for the masjid with it

There maybe others but thats all I know. And Allaah knows best.
 
Al-Kashmiri

Al-Kashmiri

Well-Known Member
Staff member
As-salaamu `alaykum

http://fatwa-online.com/miscellaneous/banking/index.htm

From the same site,

Using ribaa funds for good causes

Question: I had shares in a bank which deals with ribaa, and then I sold them and earnt a profit. And now, some time has passed and I do not know what to do with it (the profit). So what do you advise me with? And may Allaah reward you with good.

Response: In the Name of Allaah, and all Praise is for Allaah (alone). The ribaa profit can be spent on good causes, whilst you (are entitled to) keep the initial amount (of the investment). So you must spend this profit in assisting the mujaahidoon and rennovating toilet facilities, and donating to the poor and that which is similar to this.

Shaykh Ibn Baaz
Silsilah Kitaab ad-Da'wah (10), al-Fataawa - Volume 3, Page 200
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GAZIJA

GAZIJA

Well-Known Member
Staff member
ayman1 said:
There are now several options that are Sharee`a compliant. One example I heard of is The Bank Of Whittier and the LaRiba organization in the US and Guidance Finance (not sure of the name) in Canada (?).
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Esselamu Aleikum,

There is no such institution in the USA that is complete and clean from some type of wrong doing. If they say is riba free then you have to study their contract and according to what some said, the contract it self is not good.
for exp. now days in the US you can buy a car with 0% interest which sounds good and is riba free, but if you look at the contract then you will find that is not permissable for a muslim do buy a car with 0% interest. My brother bought a car on 0% thinking that is okay, when he asked a Syikh about it he said is not permisable, so he paid a car off as fast as he could.

You can not find islamic bank in the US which is clean from some wrong doing in the process like you have in muslim countries.
LaRiba bank it self is not reliable, because they say they will help you if you have problems paying, but they are not.

One of my friends bought appartmant with Guidance islamic Bank, and he is paying same money he would with the Citibank , except there is no "riba" involved.

U should not let sheitan lead you into this trap. If you want to take Islamic Loan at leat here in the US, then let some Shyeikh read before you decide to buy something.

Esselamu Aleikum
 
ummyasiin

ummyasiin

Striving for Janatul firdous
ayman1 said:
That is a good and valid point. You end up paying the same (or even more) money but it is called a different name, e.g., interest becomes "administrative fees", mortgage become "lease contract", etc. This matter is a lot more complicated than a mere renaming of aspects of the loan.

The key differentiator between Western style mortgage and an Islamic one, IMHO, is partnership, i.e., shared risk. Western banks do have some risk when they lend for real estate, the risk of default. They cover it by charging interest and penalties and they end up with the property which they can resell. That is not an Islamic way to finance and is clearly riba. If the banks were partners with the borrower instead, the risk is truly shared and also is the reward when the property appreciates in value.
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this is true,..unfortunatly living in the US there is no such talk,...merely a re name....also for us that cannot afford to migrate, we clearly are not faulted in this matter, especially with things called "income tax" which is a percentage of money "taxes" from your earned paycheck and at the end of the year you will recieve it back, if you have kids you may have more back or diferent deductables such as gas you use to travel to work, uniforms,school loans etc.... it may or maynot be considered riba, we HAVE to obey the law of the land, we will be penalized and subjected to prison if we dnt pay taxes, so sad to say we are out of control...and Allah knows best.:girl3:
 
ahmed_indian

ahmed_indian

to Allah we belong
mollaali said:
There is nothing wrong with Reba. Someone who has money will loan it to other to make money and in return the loaner will make money as well. What is wrong with that?.
The reason profit has made it haram is he did not want to pay interest of the loans to those who financed his war.
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when Allah says its wrong...then its wrong. you or i cant make it halaal.

its not about making money, its about exploiting a person who needs money.
 
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