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How should one pay back an interest based loan

Answered as per Hanafi Fiqh by DarulIftaBirmingham

Dear Sir, I came to Britain as student and got credit card limits and bank loans. It was Year 2003. I spent money and nothing left with me and finally I came back to Pakistan and since then I am in Pakistan. Please according to law for three years banks will not offer me anything. Also I wanted to comeback to UK but due to this reason I could not. However I want to pay back my money but to contact with the bank there are problems. Please let me know if and how to pay back money. Is it possible to give to the poor but I cannot pay back to banks (that is the point). I want to get rid of this sin. Please guide. Also let me know the payback will that include the interest or the original money without interest

In the name of Allah, the most Beneficent, the most Merciful.


It is not permissible to take out interest based loans from the bank or from any other organisation.

In the Holy Quran Allah (SWA) has said:

“Allah has permitted transactions and has forbidden riba” (Surah Al Baqarah v.275)

The Prophet of Allah (Sallallahu Alahi Wasalam) has cursed the person who takes interest, who gives interest and who writes it and who witnesses it.” (Mishkaatul-Masabeeh p.244 v.1)

“To take dirham of interest knowingly is worse than committing adultery 36 times.” (Mishkaatul-Masabeeh p.246 v.1)

The wealth of the riba-consumer, no doubt appears to be increasing, but no matter how increased is the wealth of the riba-consumer, he remains forever deprived of its fruits that is comfort and honour.  They will have less satisfaction and peace of heart.

However, a person who gives zakat and regularly gives sadqah will have more satisfaction and peace of heart, which is the real comfort.  (Maariful Quran p.674 v.1)

Allah (SWA) in the Holy Quran has said:

“Allah destroys riba and nourishes charities”. (Surah Al-Baqarah v.276)

According to the Sharia Law you are not obliged to pay back any more than the capital; and as for the interest, you are not obliged to pay it. However, if you fear problems by not paying back the interest, then pay it, and repent to Allah.

Allah (SWA) is the Most Merciful and he forgives everybody’s sins.  If a person had been taking interest or was involved in interest bearing transactions, he should seek forgiveness from Allah (SWA).

Allah (SWA) in the Holy Quran has said:

“Say, ‘O servants of mine who have acted recklessly against their own selves, do not despair of Allah’s mercy.  Surely Allah will forgive all sins.  Surely he is the Most Forgiving, the Very Merciful’.”   (Surah Az-Zumar v.53)

Sa’id Ibn Jubayr reports from Saaiduna Ibn Abbas Radiallahu Anhu that there were some people who killed a lot of people unjustly and had committed a lot of shameful acts.  They came to the Holy Prophet of Allah Sallallahu Alahi Wasalam and said, “The religion you invite us to is, no doubt, very good, but we have a problem.  We think about all the major sins we have already committed.  Now if we were to become Muslims, do you hope our repentance will be accepted?”  Thereupon, Allah (SWA) revealed this verse.

The repentance made from sins, no matter how serious, gets to be accepted.  And by genuine tawbah, all sins will be forgiven; therefore, no one should lose hope in the mercy of Allah (SWA).  (Maariful Quran p.573 v.7)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.