Interest on loans
Question
If a person is in debt and takes a loan from a family member, is the family member allowed to make a profit from this transaction? For example, the monthly amount to pay back is clear but instead of paying the loan over 48 months, 5 extra months are added on. The loan was paid up at 48 months but the same monthly instalment was given for an extra 5 months. Will this be regarded as interest or profit?
Answer
The extra instalments (over and above the principal loan) will be considered as interest which is Haraam. Hence, only the principal loan should be repaid.
References (Arabic / Urdu sources)
أَيُّهَا الَّذِينَ آمَنُوا لا تَأْكُلُوا الرِّبَوا أَضْعافاً مُضاعَفَةً وَاتَّقُوا اللَّهَ لَعَلَّكُمْ تُفْلِحُونَ (سورة آل عمران – اية 130)
فَإِن لَّمْ تَفْعَلُوا۟ فَأْذَنُوا۟ بِحَرْبٍۢ مِّنَ ٱللَّهِ وَرَسُولِهِ (البقرة آ:279)
وَقَالَ ابْنُ مَسْعُودٍ آكِلُ الرِّبَا وَمُوكِلُهُ وَكَاتِبُهُ وَشَاهِدُهُ إذَا عَلِمُوا بِهِ مَلْعُونُونَ عَلَى لِسَانِ مُحَمَّدٍ – صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ – إلَى يَوْمِ الْقِيَامَةِ – كَذَا فِي النِّهَايَةِ (الجوهرة النيرة 1/212)
روي عن رسول الله صلى الله عليه وسلم أنه نهى عن قرض جر نفعا ؛ ولأن الزيادة المشروطة تشبه الربا؛ لأنها فضل لا يقابله عوض، والتحرز عن حقيقة الربا، وعن شبهة الربا واجب هذا إذا كانت الزيادة مشروطة في القرض (بدائع الصنائع 7/395)
- Answered by
- Mufti Mohammed Desai
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