Paying interest fees with interest money
Question
Is it permissible to pay interest fees with the interest received, from and to the same party.
E.g. A bank rewards its client with an interest % for utilising a savings account. On the other hand, the same bank charges the client an interest fee for using its credit card facility. Can the client pay the latter with the interest received? As it will be returning the same interest to the bank.
Answer
Yes, it is permissible. However, it is not permissible for one to intentionally delay to pay the loan until interest is charged on it and then use the interest money received to pay it out.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Zakaria Makada
- Checked & approved by
- Mufti Ebrahim Salejee (Isipingo Beach)
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