I had to inevitably take a 4 yr Bank Loan to find an accomodation in my home town. I am also working at a Software Company. My question is, since I am already paying high...

· 23 Shawwal 1430 AH1 min readFatwa 18311English
Finance and Commerce

Question

I had to inevitably take a 4 yr Bank Loan to find an accomodation in my home town. I am also working at a Software Company. My question is, since I am already paying high interest rates for my Personal Loan that I had taken, can I keep the interest earned from my Provident Fund which is comparatively low than the Interest that I have given for repayment of my loan? I completely realize that it is haram to take/give Interest(Riba). And I am sincerely working towards eliminating this haram element from my life, by not going for any more Loans. Please advise.

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh

As you have correctly stated, interest is prohibited in Islam. It will not be permissible for you to utilise the interest money accrued from the provident fund in any way. It is compulsory to distribute the interest in charity without the intention of Thawwaab.

And Allah knows best

Wassalaamu `alaykum

Ml. Ismail Moosa,
Student Darul Iftaa

Checked and Approved by:

Mufti Ebrahim Desai
Darul Iftaa

References (Arabic / Urdu sources)

المحيط البرهاني للإمام برهان الدين ابن مازة - (6 / 542(

والعقد الفاسد واجب الرد

Answered by
Ml. Ismail Moosa
Checked & approved by
Mufti Ebrahim Desai
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