Q: A question was posed to me regarding bonds.The argument which was given to me was that necessity demands one take a house bond. A person who is unable to pay cash has no other option. I suggested renting until one raises the cash.Was I correct?
A: A study of the quraan and hadith will reveal that the severest warning is that for dealing in interest bearing transactions, whether it is paying or receiving interest. Hence one should explore all halaal options such as renting, obtaining an interest free loan, securing true Islamic finance before getting involved in interest.
As a last resort if all else fails one could approach a conventional bank and request them to Islamise the transaction.
Hereunder is a basic guideline of how the deal should be structured.
1) You identify the house.
2) Request the bank to purchase the house.
3) Bank should take possession of the house.
4) Bank sells the house to you at a fixed profit ie.you know exactly how much the house will cost you till the last cent.
May ALLAH make it easy for all those who are trying to avoid interest