Is it permissible to take loans from banks in Kingdom Saudia Arabia?

· 20 Rabiʻ II 1433 AH1 min readFatwa 19840English
Finance and Commerce

Question

My question is on loans given by Banks in Muslim countries.

I am an Indian working in Saudi Arabia from 2 years. There are lot of Banks in Saudi Arabia who approach us for loans.

Option 1): They charge some amount as service charge at the beginning and we have to repay within agreed duration.

Option 2) other is buy /sell method.

Is it permissible to take loans from banks in KSA? Few of the banks are listed below, almost all banks say they following Islamic banking

1) http://www.sabb.com/1/2/sabb-en/personal/amanah/deposits

2) http://www.riyadbank.com/English/PersonalBanking/IslamicBanking.html

3) http://www.shb.com.sa/vEnglish/showpage.asp?objectID={FC2B8B2A-C186-4A91-B705-842208EC0DD5}

Please guide us in the light of Shariah.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

The links provided in the question were examined; however, there isn’t sufficient information available on the intricate details of the transaction. Hence, we are unable to issue a ruling before analyzing the contract of the financial products offered by these institutions.

And Allah Ta’āla Knows Best

Mawlana Mohammed Patel

Student Darul Ifta

Zambia.

Checked and Approved by,

Mufti Ebrahim Desai.

www.daruliftaa.net

Answered by
Mawlana Mohammed Patel
Checked & approved by
Mufti Ebrahim Desai
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