I am working in IT industry so always need to stay in big cities only as no IT companies are available in my home town. Currently, I used to stay at rented house (rent varies from Rs 7000 to 12000, depending upon the cities). So, I thought of having my own house so that I need not to pay the rent. I am fully aware that interest involved in any kind of loan is not permitted in Islam. And when I could save some money so started searching the houses, then I found that it is really very difficult to save the amount of money (from 30 lakhs to 40 lakhs) required to purchase a house. I am in dilemma, do I need to continue paying the rent and stay in rented house or I can take some partial amount as a home loan for residence purpose (not for the investment purpose) from the bank so that rent amount could be paid as EMI? So please advise on the above scenario in the light of Shariah.
Answer:
(Fatwa: 1190/991/B=1432)
In how many cities will you build your personal home when you always have to stay in big cities for your jobs? It is not easy to build homes in this age of inflation. It shall require huge amount. If you earn handsome money that you can afford rented houses in cities then there is no need to take loan in order to build home in many cities.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband