I am desperate. Can I take an interest-based home loan?

Answered according to Hanafi Fiqh by Askimam.org

 I live in hyderabad india in a rented flat and am single source of earning. I do not have the amount to buy a flat/house at one go and only option available is home loan. Can I take a home loan (which obviously has interest) as I checked all sources but could not find any option or loan without interest?I have been in rented flats and had change every few years as owners demand to vacate the house every 2/3 years. I am married and have 3 kids and changing houses every few years is expensive in terms of increased rents and huge deposit money as security.Also house rent keeps increasing every 11 months. In such a case can I have a home loan on interest as I am not using this amount for any other reason but to provide a permanent house for my family.Please advise.If i keep saving money it will take atleast another 25-30 years and still my savings will not be sufficent as land and home prices keeps on increasing.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Interest is Haram (strictly prohibited).

Consider the following verses:

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُواْ ٱتَّقُواْ ٱللَّهَ وَذَرُواْ مَا بَقِىَ مِنَ ٱلرِّبَوٰٓاْ إِن كُنتُم مُّؤۡمِنِينَ (٢٧٨) فَإِن لَّمۡ تَفۡعَلُواْ فَأۡذَنُواْ بِحَرۡبٍ۬ مِّنَ ٱللَّهِ وَرَسُولِهِۦ‌ۖ وَإِن تُبۡتُمۡ فَلَڪمۡ رُءُوسُ أَمۡوَٲلِڪمۡ لَا تَظۡلِمُونَ وَلَا تُظۡلَمُونَ (٢٧٩)

O you who believe, fear Allah and give up what still remains of riba, if you are believers. But if you do not (give it up), then listen to the declaration of war from Allah and His Messenger. However, if you repent, for you is your principal. Neither wrong, nor be wronged. (Surah Baqarah: Ayah: 278-279)

Consider the following ahadith:

عن عبد الله بن حنظلة غسيل الملاءكة قال قال رسول الله صلي الله عليه و سلم درهم ربا ياكله الرجل و هو يعلم اشد من ستة و ثلاثين زنية

Translation: “It is narrated on the authority of Abdullah Bin Hanzalah that Rasulullah (Sallallahu alayhi wa sallam) said: One dirham of interest/usury which a man consumes while he is aware (of it being interest), is more severe than thirty three counts of adultery” (Musnad Ahmed: 21394)

و عن علي انه سمع رسول الله صلي الله عليه و سلم لعن اكل الربوا و موكله و كاتبه و مانع الصدقة و كان ينهي عن النوح

 Translation: “It is reported on the authority of Ali (Radhiyallahu anhu) that he heard Rasulullah (Sallallahu alayhi wasallam) cursed the one who consumes interest, deals in interest, records interest, abstains from paying Zakaat (alms) and he used to prohibit excessive mourning” (Sunan An-Nasa’i: 5040)

It is clear from the above that interest is Haram and a major sin. It should also be understood that when Allah declares anything as Haram, it is because it is definitely harmful to us.

We acknowledge the difficulties you are experiencing in renting. However the burden and difficulties that follow after taking out an interest-bearing loan to purchase a house will be much more and will make your present difficulties insignificant.

We advise you to be patient on your present situation and continue renting.[1]. Life with interest is accompanied by the wrath of Allah. A life with patience and without interest is accompanied with the mercy of Allah that generates internal peace and happiness. What is the point of owning a house on interest when there is no peace and happiness?

 

And Allah Ta’āla Knows Best

Abdullah ibn Mohammed Aijaz 

Student Darul Iftaa
Baltimore, USA

Checked and Approved by,
Mufti Ebrahim Desai.

 


[1]A. Fiqhi Maqaalaat: V.2/217-220

 

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