• Transactions & Dealings >> Interest & Insurance

    Question ID: 146931Country: India

    Title: LIC-Policy

    Question: I am a free-lancer based in Delhi. I live in a rented house. My annual income is 8-10 lakhs rupees. My questions are: (1) I have an LIC Policy where I have to pay 24000/- per year. It covers death as well. Is it allowed? (2) Can I take Home-Loan from a bank on interest? I have no other source of income, though I have some farming land.

    Answer ID: 146931

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 291/267/B=3/1438)

    (1) The business of LIC is based on interest and gambling; hence it is not lawful for a Muslim to avail such policy.

    (2) It is not lawful for a Muslim to take loan from a bank in normal condition. It puts a man in trial and invites misfortune and problems in the house and business.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India