Interest Dealings in Non-Muslim Lands
Posted: 29 Zul-Qa’dah 1423, 1 February 2003
| Q.) Is Interest prohibited between a Muslim and non-Muslim in Darul-Harb (non-Islamic state) like South Africa, UK, Australia, etc.? |
A.) According to the overwhelming majority of the Muslim Jurists, there is no difference in the prohibition of interest between a Muslim and non-Muslim anywhere, Darul Islam (Islamic state) or Darul Harb (a state of ongoing conflict with Muslims). In the early days of Rasulullah 
many Muslims used to enter into Riba transactions with non-Muslims, but when Riba was prohibited, they stopped this practice totally. The verses of the Noble Qur’an which prohibited Riba did not differentiate between a Muslim and non-Muslim. Similarly, there is no example in the days of the Sahaba (RA) where anyone of the Sahaba (RA) entered into Riba transaction with a non-Muslim after the prohibition was enforced. Therefore, one cannot be advised to take an interest-bearing loan, even in a non-Muslim country.
And Allah Ta’ala Knows Best
Further Reading: The Issue of Interest