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Is interest / Riba based mortgage and line of credit is permissible or Forbidden in Islam.

Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

 

One of our brothers/sisters has asked this question:

As-saalammu Alaikum Wa Rehmatullahi Wa Barakatuh

 

I dont know how and where to start, the issues I am faced with, is interest / Riba based mortgage and line of credit is permissible or Forbidden in Islam. I have seen this question is being asked many times and you have always replied in the light of Quran and Sunnah and now we all know that interest is HARAM. Recently I came across a video lecture given by an Islamic Scholar Dr. Tahir-ul-Qadri from Pakistan, during his vist to Toronto he deliver his one and half hour long lecture / speech on interest based home mortgage and line of credit for businesses. Naturally this has flare-up the desire to own a house for many of us including some of my family members and best friends.

 

Although Dr. Qadri did not deny or question the Islamic stance on the status of Interetst / Riba and its permissibility (hurmat) directly but his point of view is under the circumstances, Muslims live in North America and Europe and other western countries, Islamic jurisprudence on interest and mortgage is deemed permissible due to the fact that the applicability and enforcement of Islamic jurisprudence not possible under the non-Islamic state and since there is no alternative is established and made easily available to Most of the Muslims to fulfill their financial needs.

 

He also believe it is an Ijtahadie issue, further more he said, since most of the people living in these countries receive monetary and financial assistance from the their respective governments in terms of child tax benefits / subsidy, health and social services are by most of the Faqeh categorically consider Halal or permissible though the source of the money is coming from interest (Riba) based economy and hence the issue of mortgage is not that different. Farther more he said, if we would like to verify his point of view from the knowledge and resource from the past from different Islamic experts on Islamic jurisprudence, we will not find or may not be able to verify because this issues is unique to our times and pertinent to these countries and has no such precedent in past so it was not been given much consideration.

 

Under this pretext and many other points he suggested interest based home mortgage is acceptable until a viable Islamic solution is made available, even though the status of the Interest / Riba remains categorically forbidden and Haram. For reference of his full speech (in Urdu) on this issue is available online (http://www.minhaj.ca/audio.shtml).

 

His lecture got huge local media attention and yet once again divided Umah on Understanding Islamic ruling, it has created a new wave of confusion and despair which has effected many of us intensely.

 

I would humbly request (if possible) please listen to his complete lecture and then reply us from true Islamic ruling on Home Mortgage from Quran and Sunnah.

 

Jazaak Allah Khair Wa-Aslaam

 

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Answer:

 

Riba permissible in canada west

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.


 

Allah Says in the Holy Quran Chapter 30 Surah Rum verse 39:

39 That which ye lay out for increase (riba) through the property of (other) people will have no increase with Allah: but that which ye lay out for charity seeking the Countenance of Allah (will increase): it is these who will get a recompense multiplied.

 

Allah Says in the Holy Quran Chapter 2 Surah Baqarah verses 275-276:

275 Those who devour riba (usury) will not stand except as stands one whom the Evil One by his touch hath driven to madness. That is because they say: "Trade is like riba (usury) but Allah hath permitted trade and forbidden riba (usury). Those who after receiving direction from their Lord desist shall be pardoned for the past; their case is for Allah (to Judge); but those who repeat (the offence) are companions of the fire: they will abide therein (for ever).

276 Allah will deprive riba (usury) of all blessing but will give increase for deeds of charity: for He loveth not creatures ungrateful and wicked.

 

Allah Says in the Holy Quran Chapter 3 Surah Ale-Imraan verses 130-132:

130 O ye who believe! devour not riba (usury) doubled and multiplied; but fear Allah; that ye may (really) prosper.

131 Fear the fire which is prepared for those who reject faith.

132 And obey Allah and the Messenger; that ye may obtain mercy.

 

Allah Says in the Holy Quran Chapter 4 Surah Nisaa verse 161:

161 That they took riba (usury or interest) though they were forbidden; and that they devoured men's substance wrongfully; We have prepared for those among them who reject faith a grievous punishment.

 

Malik related that he had heard that a man came to Abdullah ibn Umar and said, "Abu Abd ar-Rahman, I gave a man a loan and stipulated that he give me better than what I lent him." Abdullah ibn Umar said, "That is riba."

 

Malik related to me that he had heard that Abdullah ibn Masud used to say, "If someone makes a loan, they should not stipulate better than it. Even if it is a handful of grass, it is riba."

 

Al-Tirmidhi Hadith 2827 Narrated by Abdullah ibn Mas'ud

Allah's Messenger (saws) said, "Even though usury be much, it leads in the end to penury."

 

Sunan of Abu-Dawood Hadith 3534 Narrated by Abu Umamah

The Prophet (saws) said: If anyone intercedes for his brother and he presents a gift to him for it, and he accepts it, he approaches a great door of the doors of usury.(Thus, bribery is also a part of riba)

 

Sahih Al-Bukhari Hadith 4.28 Narrated by Abu Huraira

The Prophet (saws) said, "Avoid the seven great destructive sins. The people enquired, "O Allah's Apostle! What are they? "He said, "1. To join others in worship along with Allah, to practice sorcery, 2. to kill the life which Allah has forbidden except for a just cause, (according to Islamic law), 3. to eat up riba (usury), 4. to eat up an orphan's wealth, 5. to give back to the enemy and 6. fleeing from the battlefield at the time of fighting, and 7. to accuse chaste women, who never even think of anything touching chastity and are good believers. (The Prophet (saws) included riba in one of the Seven Destructive Sins. If we read the other sins which accompany the list, one can imagine what is the magnitude of the sin of riba)

 

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

 

Dear and beloved brother in Islam, Allah and His Messenger (saws) have absolutely clearly and completely declared the concept of riba absolutely forbidden and unlawful for the believers who sincerely believe in Allah and the Last Day.

 

Beloved brother, know and believe with total and absolute conviction that no amount of ijtehaad amongst creation can declare lawful what Allah and His Messenger (saws) have declared unlawful and forbidden!

 

The brother scholar who says that the concept of riba is a ijtehad issue is sadly mistaken.for none other than Allah and His Messenger (saws) have declared the concept of riba as absolutely unlawful.thus let no person or scholar tell you otherwise!

 

If one trusts, obeys, and follows the guidance and commands of Allah and His Messenger (saws), one can be assured of never ever being misled; but if one believes, obeys and follows any other guidance, other than that of Allah and His Messenger (saws), one can be assured of being led astray.

 

Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

 

Your brother and well wisher in Islam,

 

 

Burhan


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