We are joint family with 3 sons & their wives. Father and mother along with their children. We do not have money to buy house, so we are planning to rent house on heavy deposit. It means we will give 5 or 10 Lacs to the owner and will use his house for 3 or 5 years without paying the monthly rent or we might pay nominal 500 Indian rupees. Here the owner is in need of money otherwise he might go for taking loan with interest. We are also in need of the house. Is it allowed to take home on heavy deposit? We are planning to take house lease for 3 years on heavy deposit with nominal rent 500 rupees and maintenance 1500 rupees.
بسم الله الرحمن الرحيم
(Fatwa: 272/272/SD=05/1437)
According to Shariah, it is unlawful to take a house on nominal rent by giving heavy deposit. It is tantamount to benefit from loan which is interest.
كل قرض جر منفعة ، فهو ربا . (إعلاء السنن : 14 /512 باب كل قرض جر منفعة ، فهو ربا ، ط: كراچی)
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband