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:

Dear Burhan,

I am from New Delhi, India. I want to buy a new house in a muslim dominated area. I live in a very small colony. That colony is surrounded by all low caste non-muslims. In case of any mis-hap or riots, it`s almost impossible to survice. You know what happened in Gujarat. Also, there are everyday clashes between them and muslims.

My question is...

Can I buy a house on loan. There is no other alternative. On the other hand our house is also small.

I have all enquired about any bank of shariah complaince finance. There is absolutely no such bank in India. Please guide. 

(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:

Buy house on 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.

Your Question: Can I buy a house on 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!

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. And he (saws) used to prohibit wailing.

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.

Your Question: I have all enquired about any bank of shariah complaince finance. There is absolutely no such bank in India.

Allah Says in the Holy Quran Chapter 64 Surah Tagabhun verse 16:

16 So fear Allah as much as ye can; listen and obey.

Al-Tirmidhi Hadith 5083 Narrated by Abu Dharr

Allah's Messenger (saws) said to him, "Fear Allah wherever you are.”

Respected brother, if you do not have the necessary funds to purchase a house and wish to take a loan to purchase the house, but happen to live in a country where there is no financial institution who would give you a mortgage based on interest-free Shariah compliant principles….then the lawful options available to you are either to satisfy yourself with the house you currently live in, or move to a rented house in your desired location….but under absolutely no circumstances would it be lawful for a believer who sincerely fears Allah and the Last Day to indulge in the unlawful ‘riba’ or interest.

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