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:

I know that it is HARAAM in ISLAM to pay/receive interest of any kind.

 
Now I am a salaried person and have to pay a lot in TAXES. around 33% of my hard earned salary

 
I stay in a Family HOuse with my parents.

 
I can save that TAX if I buy some INSURANCE or Mutual Funds or take a HOME LOAN.

 
I know INsurance is not allowed in ISLAM; and Also not interested in Mutual Funds.

 
Would like to know if I take HOME LOAN and I Pay interest to the BANK in that way I will get a rebate and will save TAX as the interest I am paying to the bank.

 
It would be great if you can throw more light on this.

 
IF I CAN TAKE A HOME LOAN and pay interest to SAVE my HARD EARNED MONEY.

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Take loan pay interest riba

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 none 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 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

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

130 O ye who believe! Devour not ‘riba’ 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 30 Surah Rome verse 39:

39 That which ye lay out for ‘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 verse 276:

276 Allah will deprive ‘riba’ of all blessings, but He will give increase for deeds of charity: for He loveth not creatures ungrateful and wicked.

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 ‘riba’, those who paid it, those who recorded it, and those who refused to give sadaqah.

Respected brother in Islam, the taking or paying of ‘riba’ or interest is categorically forbidden and absolutely unlawful in Islam for the believers who sincerely fear Allah and the Last Day…..thus make no mistake brother, if you take on an interest-bearing loan, you would be in manifest transgression of the prescribed Laws and Boundaries of your Lord Most Majestic, Most Supreme!

If the only intention in taking on an interest-bearing loan and thus indulge in the unlawful abomination of ‘riba’ is so that you might save some of your hard-earned money in paying taxes…..know and believe with absolute conviction brother, that the saving of this mere and paltry taxes would hold no stead when on the Day of Judgment, Allah and His Messenger (saws) declare war on those who indulged in the abomination of ‘riba’!!!

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!

If one believes that the amount one saves in one’s taxes by indulging in the abomination of ‘riba’ is worth the unimaginable weight of the Curse of Allah Subhanah and the declaration of war against them by Allah and His Messenger (saws)….then one may do as they please! But if one sincerely fears Allah and the Last Day, it would only be prudence that one does not even approach, leave alone indulge, in something which is so categorically forbidden by Allah Subhanah, the Lord of the Worlds!

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 Allah’s 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