Home » Hanafi Fiqh » Darulifta-Deoband.com » Is receiving house building loans with 4% administrative charges halal?

Is receiving house building loans with 4% administrative charges halal?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
AA We receive house building loans equal to 36 months basic pay salary from university and return it in 120 installments with 4% administrative charges. Is it halal or not?

Answer

(Fatwa: 472/430=B/1430)

The 4% administrative charge given with 120 instalments is not lawful, it is interest.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

Read answers with similar topics: