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Father gives loan and takes rent interest

Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

 

One of our brothers/sisters has asked this question:

assalamalaikum, my aunty had taken a loan from a bank for her childs studies which was about 16 lakhs for which she had given her house as surity and the bank has given 2 years time to pay back during which intrest was also added after 2 years the loan went upto 21 lakhs so she asked my father to help my father helped her by giving 10 lakhs for which he had broken a boundand incurred some loss as it was broken before period my father gave money to my aunty and she by adjusting some more money she got her house back my aunty agreed that her house she had given on rahen for my father so my father is takig 5000 rs from the rents recived from that house is this called intrest as she agreed to pay full amount beside that givin 5000 rs per month till she give full money?my father is ready to bare 50% expences on that house as he is taking half of the rent......please help me out as i have given this question on many site but no response had been given please this my humble request sir and ur my last hope please help me as soon as possible with relevant hadees.thank you jazakallahkhair. 

 

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Answer:

 

Father gives loan and takes rent interest

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

 

If your father has given the 10 lakhs as help to your aunt to recover her house, then indeed the 5,000 monthly rent (or profit) he takes would be considered as riba. If the funds were given as a form of help or qardan hasana (goodly loan), then anything your father takes from your aunt in lieu of that loan would be considered as riba in the Sight of Shariah and in the Sight of Allah Subhanah.

 

But say, instead of giving a loan of 10 lakhs, your father had agreed with your aunt that he would become the part-owner of the said property, then he would be entitled to a share of the monthly rent derived by renting that property.and that would have been a transaction pure from the element of riba.

 

Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

 

Your brother and well wisher in Islam,

 

 

Burhan

 


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