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:

the govt. servents are offerd to availe the loans from banks for house purchase. banks recovers about double of the origional amount after some years. although a servent can easely pay the required amount ( that amount may be the amount which govt. give him the house rent per month). my question is that can a man avail this facility especially in a sense of saving govt. house rent and become an owner of house, what sharia says? thanks. 

(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:

Riba mortgage house

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.

Dear and beloved brother in Islam, it is neither the concept of taking loans, nor the concept of paying the loan in installments over time which is unlawful or prohibited in Shariah; what is absolutely and categorically prohibited in Shariah is if the loan or the installment has an interest or ‘riba’ element attached to it.

The reason or purpose a loan is taken is absolutely inconsequential and immaterial; what determines its permissibility/impermissibility in Shairah is whether or not there is an interest or ‘riba’ element attached to the loan.

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!

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.

If one needs to take a loan to fulfill any of their lawful needs or wants, absolutely regardless of whether it is for marriage, or buying a car, or a house, etc….there is no harm provided the repayment of the loan is not based on ‘riba’ or interest.

But if one (Allah forbid) takes out an interest-based loan, absolutely regardless of the purpose for taking the loan, it would be absolutely unlawful and ‘haraam’ in the Sight of Shariah.

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