As Salamu alaykum wa Rahmatullahi wa Barakatahu, I wanted to know, can we take home loan? I read in one of the fatwa that first bank has to buy the house and then sell it to us, this process is correct. But i am not sure which bank does it. Can you please tell me can we take home loan from the banks in India (i am not much well versed with bank information). ALLAH HAFIZ
Answer
(Fatwa: 1570/1488=D/1429)
You will have to pay interest on taking cash home loan, therefore it is unlawful. Therefore, you should avoid it. However, under the Govt scheme, you can buy the houses built and allotted by the Govt with interest on the instalments of 10-20 years, but you will have to deal with them on the total amount (real price along with the interest) that you will pay in instalments of 10 years. It will be right. Though in this way the interest was included, but it is as increased price for you which is lawful.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband