Pay and Take Interest
Mu' meneen Brothers and Sisters,
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Jazak Allah Khair brother Burhan for your answer, which after going through the site in detail, I found the answer to my question from other question and answers.
My present one is regarading the money that we get from the banks as interest towards our deposits. By deposits I mean the ordinary account used for daily transactions.
Can the interest amount from this account be used to pay towards the interest for a bank loan? For example if a person has deposits for a year and then he wishes to build a house for which he has to take a loan as he dosent have that much of an amount. I hope my question is clear.
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Pay and Take Interest
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Q-1: My present one is regarading the money that we get from the banks as interest towards our deposits. By deposits I mean the ordinary account used for daily transactions.
Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:
O Believers!, fear Allah and give up that riba which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!
Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:
That they took riba, although they were forbidden. And that they devoured mens substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!
The Quran has used the term riba which can be translated into English as usury. And interest is one of the parts of usury, and thus is considered haraam in Islam.
Any increase in the wealth or property or product which is gained by a fixed percentage and/or for a fixed period will be considered as usury as thus it is haraam. Or any wealth, property, or product which is lent and then taken back with any increase in the same kind, will be considered usury and thus haraam.
Thus, taking of the interest from a bank on the money deposited will be considered a part of usury, and thus haraam.
Q-2: Can the interest amount from this account be used to pay towards the interest for a bank loan?
Firstly, It is not permitted in Islam to take out a loan from a bank or anyone else on interest! Secondly, it is not permitted in Islam to take interest, from a bank or anyone else! Thus, if one is not permitted to take interest; the question of paying this interest towards the interest of the loan does not arise!
Q-3: For example if a person has deposits for a year and then he wishes to build a house for which he has to take a loan as he dosent have that much of an amount.
If one does not have enough amount to buy a house or anything else, he/she should defer buying the house, unless Allah blesses them from His Bounty. It is not permissible for a believer, who sincerely believes in Allah and the Last Day, to take or pay interest. And every believer, who sincerely fears the accounting of an Inevitable Day, should strive to come out of the existing loans, if any.
Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.
Your Brother in Islam,