My name is Ajaz Ahmed and I am from Kashmir. I want to set up Islamic loan facility for Muslim brothers. I will purchase cars, house, fridge etc and then add additional profit amount so that the brothers can pay in installments for fixed years/months. Is it ok if I ask for gold, property etc as security so that when the brothers pay in full, I return the same? Please advise.
Answer
(Fatwa: 1156/970/B=1433)
As you mentioned, if there is no involvement of giving and taking interest in instalment, then you may do this work. And you can ask for gold or property as security.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband