Please advise if the following situation would be permissible in Islam-
There are 0% money transfer credit cards that allow you to borrow a fixed amount of money (£20k for example) from the credit card straight into one’s bank account. This £20k can be repaid interest free unto a maximum of 12-24 months depending on the card issuer. However, there is a one off fixed bank fee to get this interest free loan. The person is quite sure that he will be able to return this £20k well before the deadline. The intention of borrowing this £20k is to expand one’s business. Is this allowed?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In order for us to advise, forward us the terms and conditions of the credit card company and the once-off fixed bank fee.
You may email your clarification to: firstname.lastname@example.org
Ref: Ahmed-Ur-Rahmaan Patel
And Allah Ta’āla Knows Best
Ahmed-Ur-Rahmaan Ibn Mufti Mohammed Patel (Rahmatullah Alaih)
Student Darul Iftaa
Azaadville, Johannesburg, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.