Fixed Loan Through The Bank
Question
Is taking a fixed loan from the bank permissible? For example, the bank takes the papers thus assuming ownership of the car, and a higher fixed amount is set over a certain period.
Answer
Taking a loan from the bank to procure a car is not permissible as it involves paying interest.
The one involved in interest wages war against Allah Ta’ala and His Rasul Sallallahu Alaihi Wasallam:
“O you who believe. Fear Allah and give up what remains (due to you) from Riba, if you are really believers. And if you do not do so, then prepare for war against Allah and His Rasul.”
Furthermore, a person who engages in interest is cursed by Nabi Sallallahu Alaihi Wasallam:
“Jabir Radiallahu Anhu narrates that Rasulullah Sallallahu Alaihi Wasallam cursed the one who takes interest, the one who gives interest, the one who records it and the one who witnesses it and he said they are all equal.”
Furthermore, where you have stated, “the bank takes the papers thereby owning the car”, it is important to note that merely taking possession of the paper such as the logbook, does not entail taking possession of the car. The bank has to take physical possession of the car for the possession to be valid in Shari’ah
In conclusion, we advise complete abstention from such transactions.
References (Arabic / Urdu sources)
يأَيُّهَا الَّذِينَ ءَامَنُواْ اتَّقُواْ اللَّهَ وَذَرُواْ مَا بَقِىَ مِنَ الرِّبَواْ إِن كُنتُمْ مُّؤْمِنِينَ فَإِن لَّمْ تَفْعَلُواْ فَأْذَنُواْ بِحَرْبٍ مّنَ اللَّهِ وَرَسُولِهِ
عَنْ جَابِرٍ رضي الله عنه قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ صحيح )مسلم #1219)
كل قرض جر منفعة لا يجوز مثل أن يقرض دراهم غلة على أن يعطيه صحاحا أو يقرض قرضا على أن يبيع به بيعا؛ لأنه روي أن كل قرض جر منفعة فهو ربا، وتأويل هذا عندنا أن تكون المنفعة موجبة بعقد القرض مشروطة فيه، وإن كانت غير مشروطة فيه فاستقرض غلة فقضاه صحاحا من غير أن يشترط عليه جاز (تبيين الحقائق 6/29 (
- Answered by
- Mufti Abdul Kader Fazlani
- Checked & approved by
- Mufti Yacoob Vally Saheb
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