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