I am owning land/plots, I need to construct houses and sale. If I need finance Indian banks is only option, according to new policy loans will be cheaper for housing finance. Planning to partner with non-Muslim friend, his firm will take loan on my land, afterwards we sale, profit will be distributed among both of us. Since my friend is taking loan, is it haram for me to proceed in this way. Please guide me how can I carry my construction work, so that I will feed my family halal money.
بسم الله الرحمن الرحيم
(Fatwa: 917/990/B=9/1438)
As it is haram to take the interest in the same way it is also unlawful to give interest. In the question mentioned above in case of being a partner with a non Muslim when you pay the interest in the installment you shall also be deemed the payer of interest. Thus you should not plan like this, rather only sell the plot and be content with its profit.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband