Paying Interest

[Bilal Ahmed]

Asalaam Alaykum brothers and sisters,

Does anyone know what the Qur'an say about interest, i know we are not allow to take interest of people, but what about paying interest to the bank, i dont know how it works in other countrys but in the uk, when we take a loan or mortgage from the bank we need to pay interest is that haram????

 

[Jihan]

yes it is equal to us making others pay interest. you should watch "halal and haraam in business transaction " by imam imran hussein. it puts down the rules on ribah one by one. inshaAllah it will help you to understand. sorry i don't have any articles or videos. InshaAllah i'll do some searching.

 

[Happy 2BA Muslim]

:salam2:

Should he go for an interest-based mortgage if that is cheaper than renting?

Question:
Here in the UK; to buy a house you have to take a mortgage; that is you borrow money from the bank with interest; now I am paying rent for accomadtion; but if I take the mortgage option it works better for me as I will pay less per month, and the house will be mine; is that halal; if not what is the best way to do it?

Answer:
Praise be to Allaah.

Dealing with riba (interest, usury) is haraam according to the Qur’aan, Sunnah and scholarly consensus. So it is not permissible to do that, no matter how great the need. The fact that a person may need a house or car, or to get married, or any other need, does not give him the excuse to do something that Allaah has forbidden. The Muslim has to fear Allaah and remember that He is always watching; he should prefer the Hereafter to this life. If he finds someone who will lend him the money then all well and good. If he cannot find anyone who will do that then he could borrow from a Muslim, taking a loan with no interest involved. If he cannot find anyone to lend him money then he should be patient in the hope of earning reward. Whoever gives up something for the sake of Allaah, Allaah will compensate him with something better than that.



Islam Q&A
Sheikh Muhammed Salih Al-Munajjid

 

[ansari]

:salam2:

wat abt buying car on finance from islamic bank...like they buy car from the showroom then they keep some profit and give to us is that ok ?

 

[sharaz]

Salaam,

I think there are some companies that do halal finances accourding to the shariah. I once read an article about an Islamic bank doing halal mortgages and finances which were approved by top shiekhs from Saudi.

It not permissable taking interest from anyone as brother Happy 2B A Muslim has explained. One of mates who doesn't have much knowledge about Islam said to me last week that he went to his local mosque and the Imam was doing a brief talk about riba. The Imam said it is permissable for a muslim to take a loan or a mortgages in this country (UK) because we are living in a Kufar land, but not permissable if we living in a muslim country.

So i told my mate it is not permissable at all wheather we are living in the UK or saudi. Secondly if he thinks he living in kufar country than he should move to a muslim country.

Whether we live in a Muslim country or a non-Muslim country interest can never become permissible, in fact living in this country has a much higher standard for many people than if they had to live in a Muslim country and people who make the interest permissible in this country would do the same in a Muslim country because the economic system of Muslim countries is no different from non-Muslim countries

I also reckon the Imam has got a mortgage himself so that why he making it permissable. LOL