LIC-Policy

Answered according to Hanafi Fiqh by Darulifta-Deoband.com
I am a free-lancer based in Delhi. I live in a rented house. My annual income is 8-10 lakhs rupees. My questions are: (1) I have an LIC Policy where I have to pay 24000/- per year. It covers death as well. Is it allowed?
(2) Can I take Home-Loan from a bank on interest? I have no other source of income, though I have some farming land.

بسم الله الرحمن الرحيم

(Fatwa: 291/267/B=3/1438)

(1) The business of LIC is based on interest and gambling; hence it is not lawful for a Muslim to avail such policy.

(2) It is not lawful for a Muslim to take loan from a bank in normal condition. It puts a man in trial and invites misfortune and problems in the house and business.

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband

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