I want to buy a house in Norway. Over here in Oslo, the houses are expensive and we can only buy them through banks. But, with monthly installments it also includes interest. Is there any relaxation in Islam for this scenario or interest is forbidden no matter what the situation is?
Answer
(Fatwa: 1448/887/H=1432)
As you also know that interest is prohibited and haram. If you say to the bank manager that they should buy so and so house and take it into their possession (i.e. for four lakhs). Thereafter, they fix the total amount which they want to receive as monthly instalments and you purchase it on the total price for example in six lakh rupees and you pay this amount in monthly instalments, then it is lawful and it shall not have interest dealing, rather it shall have two transactions and both shall be right. You should understand it by local Ulama fully and follow it practically.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband