I had hoped to obtain a loan from a prominent

Answered according to Hanafi Fiqh by

I want to buy a house and the only way I can do so is to take a loan. Please advise me which instituition / bank / finance house etc. in KZN or anywhere else in could provide me a loan which will be shariah compliant  i.e. there is no riba involved. I had hoped to obtain a loan from a prominent  “Islamic bank” in KZN which I thought was shariah compliant until recently when the Darul Ifta dept of the madrasah mentioned that the loans offered by this bank are not shariah compliant. I already have my vehicle financed by this bank. I am now confused. The madrasah has earlier advised about the An Nakheel Group, but on enquiry, they are not offering loans as yet. Please give me the names and contact numbers. If there are no such shariah compliant instituitions, then what are my options. Also, I am keen to know why did the Darul Ifta of Camperdown take so long to notify the public about the non-compliance of this prominent  “Islamic bank” as I am sure many Muslims would have saved themselves from riba.




In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

There are three aspects to your query

  • Acceptable Shariah complaint financing
  • Options
  • Darul Iftaa’s delay in notifying the public of the non Shariah compliancy of Albaraka Bank (referred to as a prominent bank) in your mail.

This question has been always raised that is there any acceptable Shariah complaint financing product. Apart from An Nakheel which you have stated, we do not know of any other financial institution that offers 100% Shariah complaint financing. We have stated previously that few businessmen may set up a consortium and approach the Darul Iftaa whereby a Shariah complaint product may be designed for the Muslim community.

As an option you may approach Albaraka Bank and request them to finance your house. However, before you sign the contract you may send to us to rectify the un-Islamic clauses of the contract where after if the bank is satisfied with the changes in the contract you may finance through them. It must be borne in mind that the Darul Iftaa is not opposed to the concept of the Bank. However, in providing Shariah compliant alternatives to financing one must take the issue of Shariah compliancy seriously. If Albaraka Bank co operates in adjusting their contracts and making them 100 % Shariah complaint, we pledge our assistance.

The Darul Iftaa had received a few contracts of Albaraka Bank to verify its Shariah compliancy. We had found that the bank’s contract is completely flawed from a Shariah perspective. We had then engaged the bank to rectify the un-Islamic practices of the bank. There were many instances where we corresponded with the bank with the hope of them co operating. The Darul Iftaa had finally resolved that the bank is not willing to co operate and adjust their unislamic practices. It is only then we notified the Public. The delay was due to us exercising caution. We felt it would be more appropriate in making an error in exercising precaution than making an error in hastening.

And Allah knows best


Muhammed Zakariyya Desai,

Checked and Approved by:

Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah

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

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