Is taking a home loan permissible?

Answered according to Hanafi Fiqh by Askimam.org

 

I seek your guidance for purchasing a home for myself in India.

This house/ apartment are intended for my own living and not for any investment purpose.

First of all let me bring forth my circumstance’s am doctor by profession and at present working in Bahrain, Middle East.

I was the only son of my parents who passed away in the 90s while I was still a student. I did not inherit any financial assets incurred loans for my studies and marriage which I could not repay for several years while I was working in India’s with mashwara, I relocated to middle east and have cleared all loans. Now, I look forward to resettle in India in the near future and serve my Muslim community.

I was looking forward to buy a house in India since I don’t have any place of my own to reside back home.

But, this is very expensive .which means, I need at least 9 or 10 million Indian rupees in order to buy a small sized, simple {not luxurious} flat in my city. With all my savings I cannot manage even half of this amount.

I sought for Islamic loans but unfortunately these loans are not available for expatriates with my job contract in Bahrain [perhaps it is available in other gulf countries, but not in Bahrain]

I have tried to seek loans from my employer but this option does not exist with our present working conditions in Middle East.

I earn a decent salary, but if I have to save the money and purchase a flat I will have to stay here for a very long time which is not feasible for a number of valid reasons.

I tried all options of part payment, asking for friends who can trust me to take a loan for me, seeking multiple small loans from relatives and friends etc. but since last 2 and half years nothing worked out.

The only feasible option for me right now, is to obtain a home loan from one of the commercial banks in India. This of course, is interest based and they charge around 15 percent interest.

The advantages of loan are I can pay emievery month but over a period of time I will become the owner of the house but I will never become the owner of the house if I take a house for rent. Besides, in my city I will be forced to keep relocating every two years. 

Also, I will have some income tax benefits if I take a home loan.

I know interest is haram. But in my circumstances, is there any possibility to take this option since I have exhausts all my efforts and mind for last two and half years.

 I request you to please look into my issue and guide me in the light of your Ilm for best of my life in duniya and hereafter.

 

 

 Yours sincerely

dr.irfan

bahrain

Answer

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

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

Brother in Islam,

We have read your query and understood your situation. Shari’ah strictly prohibits and condemns all forms of Riba (interest). No sin has been given a more severe warning than the sin of Riba. Allah and His Messenger (ض) have declared war on those who involve themselves in this evil sin.

يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ. فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ.

“O those who believe, fear Allah and give up what still remains of the Riba(interest) if you are believers. But if you do not then listen to the declaration of war from Allah and His Messenger”. (AlBaqarah, verse 278,279)

In another Ayah, Allah Ta’ala says,

يَا أَيُّهَا الَّذِينَ آمَنُوا لَا تَأْكُلُوا الرِّبَا أَضْعَافًا مُضَاعَفَةً وَاتَّقُوا اللَّهَ لَعَلَّكُمْ تُفْلِحُونَ.

“O you who believe! Eat not Ribâ (usury) doubled and multiplied, but fear Allâh that you may be successful.”(Al Imran verse 130).

It is not permitted for one to purchase a house on interest. If you are not able to find interest-free loans from family and friends, you may rent a house or purchase a home that is in one’s financial range.

As Muslims it imperative we abide to the commands of Allah Ta’ala and have complete faith that in doing so, comes Barakah and blessings.

“And whosoever fears Allah and keeps his duty to Him, He will make a way for him to get out (from every difficulty), and will provide him sustenance from where he never even imagined. And whosoever puts his trust in Allah, Allah is sufficient for him.” (Qur’an 65:2-3)

 

And Allah Ta’āla Knows Best

Arshad Ali

Student Darul Iftaa
Trinidad

Checked and Approved by,
Mufti Ebrahim Desai.

http://www.daruliftaa.net/

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