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Answered as per Hanafi Fiqh by CouncilofUlama.co.za

Q: We are in the process of purchasing our first house and would just like some clarity regarding the interest. Albaraka bank has approved the loan with the profit mark up at 9%. FNB has also approved the loan with the interest at 8.6%. Which would be the better option to take from an Islamic point of view? What does the Quraan say about paying interest?

Albaraka bank would be the better option because they claim they are making a profit.

The Quraan says interest is haraam.This will include taking and paying interest.


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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