I have commercial building of 3 floors and 6 months ago leased it to a bank for a period of 10 years. Lately I came across information that it is not lawful to rent out our property to the bank because they are interest based. I intend to avoid it now but there is no such provision in the contract that I can break it and have to continue with them for 10 years. I am in a dilemma since most of the people whom I came in contact with this query if this is lawful or not told that it is absolutely unlawful and I have to stop using even the rent and plan to sell of the property which I have just completed building.
Please advise the way forward as I have even taken the loan from the same bank on mortgage and since last month paying the installment using the bank rent to pay off the interest part which is 75% principle and 25% interest.
Please advise the way forward as I have even taken the loan from the same bank on mortgage and since last month paying the installment using the bank rent to pay off the interest part which is 75% principle and 25% interest.
بسم الله الرحمن الرحيم
(Fatwa: 128/147/L=02/1437)
It is not better (makrooh tanzihi) to rent the house to a bank. It is better that the house is not given to a bank on rent. However, if you have rented it then you may continue it till the contract ends. You may also use the rent yourself as well as you can pay the debt of the bank.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband