Paying The Interest Due On An Overdraft Facility On Behalf Of A Deceased

An overdraft facility is another name for an interest-based loan. All types of interest-based loans are impermissible in Shari’ah and fall within the ambit of the Hadith wherein “Nabi (Sallahu ‘Alayhi Wa Sallam) cursed the one who consumes interest, the one who gives interest, the two witnesses who are witness to the transaction of interest, and the one who pens down the interest transaction.”

As such, the Shar’i law is that it will not be permissible to pay the interest amount which is owed to the bank on behalf of the deceased. However, if one is forced by the bank to pay the amount, this amount will have to be settled from the deceased’s estate as it was a debt incurred by him. If the funds/assets in the estate are not sufficient to settle this debt, then, out of necessity, the heirs will be allowed to pay the money to the bank from their own funds. However, they should do this with a heavy heart while at the same time, seeking forgiveness for themselves and on behalf of the deceased as well.