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:

Asslam Wale Kum,

I have a query regarding Home Loan. In our islam taking interest is completely not allowed. But what about those who are in need of a home and there is no financial help. So, in such cases financial institue (Banks) are helping them but they are also charging Interest on the loan. So, i have a query that if paying Interest Rate on taking loan then what they do as there are no helping hands for them to get a nice home in a nice society. Who can help them !!!!

Kindly sugesst on this issue.

Allah Hafiz,

Rehan

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

House loan mortgage

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 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Allah says further 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 heard Allah's Messenger (saws) invoke the curse of Allah on those who took ‘riba’, those who paid it, those who recorded it, and those who refused to give sadaqah.

Allah and His Messenger (saws) have strongly condemned the concept of ‘riba’ and declared it absolutely haraam for the believers. Without an iota of a doubt, the concept of conventional bank ‘interest’ is a form, manifestation, and part of ‘riba’ or usury, and thus any transaction based or done on the concept of ‘interest’ would be considered absolutely forbidden for those who sincerely believe in Allah and the Last Day.

If taking a mortgage for buying a home or for any other reason involves the payment of ‘interest’, such a transaction would be deemed haraam in the sight of Shariah, and any believer who sincerely believes in Allah and the Last Day must abstain from it.

If your intention is to live in a nice home in a nice society, you could either buy the house in cash or if that is not possible, you can always rent a house of your choice; but to buy a house on an interest-based loan should not even be an option for one who sincerely believes in Allah and the Last Day.

To purchase a nice home in a nice society in the life of this transitory life through a means which has been specifically declared ‘haraam’ by The Lord Most Majestic is to risk losing the palatial homes and mansions the Lord Most Bounteous has prepared for His believing and obedient slaves in the Hereafter! That would be a useless substitution and a fruitless bargain indeed!

Allah Says in the Holy Quran Chapter 61 Surah Saff verses 10-12:

10 O ye who believe! Shall I lead you to a bargain that will save you from a Grievous Penalty?

11 That ye believe in Allah, and His Messenger, and that ye strive (your utmost) in the Cause of Allah with your property and your persons: that will be best for you if ye but knew!

12 He will forgive you your sins and admit you to Gardens beneath which rivers flow, and to Beautiful Mansions in Gardens of Eternity: that is indeed the Supreme Achievement.

Allah Says in the Holy Quran Chapter 39 Surah Zumar verse 20:

20 But it is for those who fear their Lord that Lofty Mansions one above another have been built: beneath them flow rivers (of delight): (such is) the promise of Allah: never doth Allah fail in (His) promise.

Allah Says in the Holy Quran Chapter 9 Surah Taubah verse 72:

72 Allah hath promised to believers men and women gardens under which rivers flow to dwell therein, and Beautiful Mansions in Gardens of everlasting bliss. But the greatest bliss is the Good Pleasure of Allah: that is the Supreme Felicity.

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

Your brother and well wisher in Islam,

Burhan