Transactions & Dealings >> Interest & Insurance

Question ID: 18677Country: Saudi Arabia

Title: Every debt that brings some profit is interest

Question: AS SALAMO ALAIKUM.I WANT TO KNOW IF I TAKE LOAN FROM A LOCAL BANK IN SAUDIARABIA AND BANK SAYS I HAVE TO PAY MORE THAN THE DUE AMOUNT IN A FIXED PERIOD.BANK SAYS IT IS ALLOWED ACCORDING TO SHARIA TO GET EXTRA MONEY FROM THE CUSTOMERS IN THE FIXED PERIOD.LET ME KNOW ABOUT THIS WHETHER IT IS ALOWED IN ISLAM.

Answer ID: 18677Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 116/131/B=1431)

A hadith says: ?every debt that brings some profit it is interest?, so the profit gained from a debt is open interest whether in fixed period or outside the period, it is interest in any case. The bank people did not tell you the right ruling. According to Islam, it is unlawful for bank to give loan and receive extra money.

Allah (Subhana Wa Ta'ala) knows Best

Darul Ifta,

Darul Uloom Deoband, India

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Title: Every debt that brings some profit is interest

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