Q: We are in the process of purchasing our first house and would just like some clarity regarding the interest. Albaraka bank has approved the loan with the profit mark up at 9%. FNB has also approved the loan with the interest at 8.6%. Which would be the better option to take from an Islamic point of view? What does the Quraan say about paying interest?
A: Albaraka bank would be the better option because they claim they are making a profit.
The Quraan says interest is haraam.This will include taking and paying interest.
COUNCIL OF ULAMA
EASTERN CAPE