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:

is it right to take loans and contruct a hous?.usage of credit cards?

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Answer:

Loans and credit cards riba

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.

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

Dear and beloved brother in Islam, it is not the concept of taking a loan which is unlawful or prohibited in Islam, but rather it is the concept of interest which is absolutely forbidden and deemed unlawful in Islam.

Dear and beloved brother in Islam, we cannot emphasize and stress enough how much the concept of taking or paying ‘riba’ is hated and despised by Allah Subhanah, the Lord of the Worlds! Under no circumstances are the believers who sincerely fear Allah and the Last Day allowed to accept or take or consume or pay even a cent of ‘riba’ or interest.

Your Question: is it right to take loans and contruct a hous?.

If you can find someone to give you a non-interest bearing loan to construct your house, there is absolutely no harm in accepting such a lawful loan. But to buy a needle, leave alone construct a whole house with a loan which is interest bearing would be an abomination and a grave sin in the Sight of Allah Subhanah.

Your Question: usage of credit cards?

Dear and beloved brother in Islam, it is neither the concept of credit nor the concept of payment cards which are forbidden in Islam; but it is the concept of ‘riba’ or interest which is associated with conventional credit cards which is absolutely prohibited by Allah and His Messenger (saws).

Some scholars are of the opinion that if one obtains a credit card and pays their bills on time before interest is accumulated or charged; because they themselves do not indulge in any transaction of ‘riba’, there is no harm and no sin. But other scholars have voiced their opinion that the very signing of the agreement whereby they agree and accept the condition that ‘if’ for any reason their payment is delayed, they will be liable for the accumulated interest charges, makes them an accomplice and party to what has clearly been declared as haram by Allah and His Messenger (saws); thus they are of the opinion that the believers should fear Allah and abstain from indulging in anything which involves ‘riba’.

Sunan of Abu-Dawood Hadith 3325 Narrated by Abu Hurayrah

The Prophet (saws) prophesized: “A time is certainly coming to mankind, when only the receiver of usury will remain, and if one does not receive it, some of its vapor will reach him.”

Beloved brother in Islam, a better and purer option for one who sincerely wishes to abstain from doing anything which would involve ‘riba’ would be to obtain a ‘credit card’ from any of the Shariah compliant Islamic Banks or Financial Institutions, or simply obtain a ‘debit card’ where the consumed amount is immediately debited from their current account, thus eliminating the need of interest being charged on unpaid bills.

Whatever written of Truth and benefit is only due to Allah’s 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