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Is it jaiz to use interest earned from a bank to pay off interest charged from the same bank ?

Answered as per Hanafi Fiqh by Askimam.org

This question was posed to me by a converted Muslim (approx. 3 years) ” I bought a house & car 2 yrs ago and tried not to go through a bank for the loans to buy these but could’nt not come across anyone who would lend me the money , so i tried Albarakah & other Islamic banking institutions So i was forced to go through a Bank and get involved it their Haraam schemes, I owe R25 000 on my car ( paid R33 000 loan for R30 000 ) basically i am just paying the interest now on my car. I also owe R87 000 on my house ( paid R17 500 loan for R90 000 ) ,I am deciding to sell my car of which i can get approx. R20 000 back after settling the bank , but a car is a necessity so i am planning to look for a car for about R10 000 , so my car story will insha-allah be solved, now my house and my question to you my respected elder.There is an investment that a bank is offering if i invest the other R10 000 that i get back from my car this investment pays out about 10% of the lump sum , which would be my repayment of my house but the thing is that this is interest that i am getting back,My question to you is can i use interest that i get from this investment to pay off interest on my home loan I will pay off the R72 500 that i rightfully owe the bank as i have already paid R17 500 , but the remaining interest that i am being charged , Is it jaiz for me to pay this interest charged to me off with interest i earn from the same bank ?


Firstly, you should make much Tawbah and Istighfaar (seek forgiveness and ask for repentance) for having entered into a interest transaction.

Secondly, try to free yourself from these debts as soon as possible.

It would not be permissible to put your money in the bank in order to earn interest, so that you may use this interest earned to pay of interest charged. One wrong has already been committed by purchasing on interest, so this should not be compounded by entering into another haraam transaction of receiving interest.

and Allah Ta’ala Knows Best

Ml. Imraan Vawda

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This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.