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Is it permissible to get business loans from banks in Canada and pay them back with interest as these loans are vital to keep my business profitable.

Answered as per Hanafi Fiqh by Arij Canada
Is it permissible to get business loans from banks in Canada and pay them back with interest as these loans are vital to keep my business profitable.

Answer:
Assalâmu’alaikum Warahmatullâhi Wabarakâtuh

Respected brother,

First of all we would like to apologize for belated reply, hence our response is as follows; We are confident that you are aware of the fact that interest is a curse and evil that has been severely condemned in the light of Shari’ah. It is mentioned in the Ahaadeeth that Rasulullâh sallallâhu alaihi wasallam has cursed the one who consumes interest, pays interest, stands witness to an interest transaction or writes out the document/s for processing such a transaction. [Muslim Shareef page#27vol#2].

Furthermore, the Qur’aan states:- “O ye who believe ! Fear Allah and leave that which remains of usury if ye are believers. But, if ye will do it not, then be apprised of war from Allah and His apostle. And if ye repent, then yours shall be capital sums; ye shall neither wrong, nor be wronged. [Surah Baqarah; 2:278-9]. In light of above mentioned verses it will not be permissible to engage in any interest based transaction. Our advice to you would be to take loan from companies or individuals who will not charge interest.
AND ALLAH TA’AALA KNOWS BEST

Ibrahim kureshi
26 February 2013
15 Rabi’ Al- Thani 1434

This Q&A was collected from the official web portal of Academy of Research in Islamic Jurisprudence (Arij) from Canada, which was headed by Mufti Ibrahim Kureshi and Mufti Zakariyya Panchbhaya. As the original website is no longer accessible, we have provided a source link of each answer to the archive copy from Way Back Machine.

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