A friend of mine asked me to find out on behalf of him a masla.
The question is as follows:
I have the opportunity to purchase a house. A small portion will have to be financed, family members are saying I should take out Islamic finance for the portion. But I am hesitant due to not being sure if Islamic Finance is correct in its current form
The family members argument is that I’m not an Aalim and so many Muftis have agreed with it. So what do I know.
Is it correct for me to take it out from FNB Islamic Finance for the house.
JazakAllah Mufti Saheb
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
We applaud your sensitivity towards Halal.
Economics today has developed in such a way that most transactions revolve around banks and interest . Muslims too have started involving themselves in such transactions.
Present day Mufti’s/Ulema have introduced Islamic finance as an alternative in order to prevent Muslims from being involved in interest dealings.
They have developed systems through which the element of interest is not present and transactions are in accordance to the rules of Shari’ah. However, great care must be taken in following the rules and conditions set by these Muftis/Ulema to avoid getting involved in impermissible dealings and transactions.
In order to determine Shairah compliancy in dealings , the following is necessary :
1) The concept must be according to Shariah.
2) The contract must express the Shariah concept correctly. If the terms and conditions of the transaction in the contract are incorrect, then the contract will not be Shariah compliant.
3) Correct implementation of the transaction. If the concept and contract are both Shariah compliant, it is equally important that the procedure of the transaction be correctly implemented. If there is a flaw in the procedure , the transaction will not be Shariah compliant despite the concept and contract being Shariah compliant.
Many banks falter in the second and third step.
Therefore, a general ruling cannot be given with regards to Islamic finance. Rulings can only be made after studying the relevant contracts and procedures in detail.
Accordingly, the Darul Iftaa cannot comment on FNB Islamic Finance . In order for us to advise you kindly send the documents(contract, agreements etc.)to the Darul Iftaa . We will then analyze them and advise you accordingly.
Kindly send your email to admin@daruliftaa.net (Reference: Ahmad Patel)
And Allah Ta’āla Knows Best
Ahmad Patel
Student Darul Iftaa
South Africa
Checked and Approved by,
Mufti Ebrahim Desai.