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Interest Bearing Loan

Answered according to Hanafi Fiqh by CouncilofUlama.co.za

Q: I need to take out a personal loan as we have debt from my daughter’s operations and I urgently need to fix the bathroom as it is leaking into the wall and has effected the wall in my kids room. Now the room smells like urine. I have tried Albaraka Bank as well as Absa (because of shariah compliance). Both banks said no as they only loan on an assets purchase not on a personal loan. Nedbank has pre approved a loan BUT it has interest on this loan.

I am not sure what to do as I know interest is wrong. What do I do in a situation like this?


A:If you have exhausted all your efforts in obtaining a halaal loan and was not able to and living as you are presently is extremely difficult and unbearable then you may take an interest bearing loan.However after taking the loan you have to make every effort to pay it quickly.

This answer was collected from CouncilofUlama.co.za, which is operated under the supervision of Council of Ulama Eastern Cape, South Africa.

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