Question Summary:
What is the ruling of taking a loan from the bank?

Question Detail:

 What is the ruling of taking a loan from the bank?

Answer :

In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
Interest based dealings have been clearly prohibited in Shariah. The Qur'an and Hadith are quite clear on this. Therefore, receiving any interest based financing from the bank will be unlawful.
الذين يأكلون الربا لا يقومون إلا كما يقوم الذي يتخبطه الشيطان من المس ذلك بأنهم قالوا إنما البيع مثل الربا وأحل الله البيع وحرم الربا.
Those who take ribā (usury or interest) will not stand but as stands the one whom the demon has driven crazy by his touch. That is because they have said: “Sale is but like ribā”, while Allah has permitted sale, and prohibited ribā. (Verse: 2:275)
يا أيها الذين آمنوا اتقوا الله وذروا ما بقي من الربا إن كنتم مؤمنين. فإن لم تفعلوا فأذنوا بحرب من الله ورسوله وإن تبتم فلكم رءوس أموالكم لا تظلمون ولا تظلمون.
O you who believe, fear Allah and give up what still remains of ribā, if you are believers. But if you do not (give it up), then listen to the declaration of war from Allah and His Messenger. However, if you repent, yours is your principal. Neither wrong, nor be wronged. (Verse: 2:278,279)
Moreover, Nabi (Sallahu ‘Alaihi Wasallam) has forbidden Muslims from giving and taking interest.
عن جابر قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء. (رواه مسلم)
Hazrath Jabir (Radhiyallahu Anhu) narrates that Nabi (Sallahu ‘Alaihi Wasallam) cursed those who are involved in usury; whether it is the person who is giving usury, receiving it, writing the transaction or witnessing it.
(Sahih Muslim Vol.11 Pg.28 – Dar al-Ma’rifah)
The basic principle of a loan is to return the exact amount borrowed without accruing any benefits. Any loan which accrues any benefit will be Haraam.
(كل قرض جر نفعا حرام) أي إذا كان مشروطا كما علم مما نقله عن البحر.وعن الخلاصة وفي الذخيرة: وإن لم يكن النفع مشروطا في القرض، فعلى قول الكرخي: لا بأس به، ويأتي تمامه.
(Raddul Muhtaar V 5 PG 166 Saeed Company)
(Jadeed Fiqhi Masaail V 1 PG 417 Naeemiyah Deoband)
 
And Allah knows best
Wassalam u Alaikum
Ml. Ebrahim Desai,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah
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