Assalamalekum, Presently i am repaying a personal loan of Rs 5 lac. Total amount including interest is 6.5 lacs.Current outstanding Loan amount is 1.5 lacs and as per the loan statement from bank it consists of 25k interest & 1.25L principal.It means I have already paid 1.25L interest till date. I just received a refund from my Employee PF account of Rs 3.25 lacs out of which 1.25 lacs is interest earned. Could i use this interest amount(1.25L) earned to prepay entire 1.5L and close my loan?
Answer
(Fatwa: 1786/506/TL=1431)
(Fatwa: 1786/506/TL=1431)
In this case, you can use the interest amount to pay off the remaining loan of 1.5 lac.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband