Question Summary:
Q : 1. My family has a car business and they have an overdraft in the bank and mortgage properties and buy and sell cars based on …2. 2. If you use a credit card which uses interest to buy food and other household items, do these items become haram, for

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1.      My family has a car business and they have an overdraft in the bank and mortgage properties and buy and sell cars based on this interest loans, and overdrafts etc... But when the interest gets paid from the bank they give it to the poor. However, because the interest was used to gain that income even though they rid of the direct interest paid from bank account, does the rest of the income become haram? For example they had an overdraft of £20,000 and bought a car for £10,000 and then sold it for £12,000, does that profit become haram? And if so, how haram does it become, will all food and clothes and house become haram for the rest of the family to live in? And sometimes I have to help pick up and drop cars to the mechanics and painters etc, is this okay for me to help in the business even though I know it is based upon interest? Should I stop helping out? Because the interest money is not directly coming in but the profit is gained from the loans and overdrafts, does the profit become contaminated and therefore all things bought with this income is haraam? I heard a trusted Mufti whom I wish not to name to avoid fitnah, saying that if some halal food is bought with riba money then that halal food is like pork, and the children in the family if they are old enough HAVE to to go out and earn a living for them self. I am 20 and it is possible that I could do this, should I leave my family and start earning for myself?
2.      If you use a credit card which uses interest to buy food and other household items, do these items become haram, for example the food you eat is like eating pork?

Answer :

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In the name of Allāh, Most Gracious, Most Merciful

Assalāmu ῾alaykum wa Rahmatullāhi Wabarakātuh
 
1) In principle, it is Harām for a Muslim to enter into any transaction which involves either paying or receiving interest. It has been narrated in a Hadeeth:
Rasulullah (salallāhu alaihi wasallam) has cursed the person who consumes interest, feeds it to others, he who records it and he who is a witness to this interest bearing transaction, and he (salallāhu alaihi wasallam) said: they are all equal (in the sin).
(Sahīh Muslim vol.2 pg27, Rashidiyya)^[1]
There is a subtle difference between a) utilising interest monies received for one’s personal use and b) paying interest due to undertaking an interest bearing loan or an overdraft from the bank.
a) Interest monies received from the banks etc should be disposed off by giving it to some needy person without the intention of reward. Such monies (interest received from the banks etc) should not be utilised for one’s personal use. Food purchased with these Harām monies will also be rendered Harām. This may be what the Mufti had implied.
b) It is also impermissible for a Muslim to take an interest bearing loan or an overdraft from the bank. By doing so, a person will fall into the curse of the Hadeeth. The profit gained utilising the money received from the loan will be legitimate and permissible to consume. However, it will be void of divine blessings.
It will be permissible for you to assist your family in their business as long as there is no direct contamination of interest monies. You should advice your family to deal with fewer cars in stock but within their means, rather than involving themselves in interest and attaining the curse of Rasulullah (salallāhu alaihi wasallam).
 
2) It is impermissible to utilise a credit card if it involves paying interest for the same reasons mentioned above. However, the food purchased will be permissible to consume.
 
And Allāh Ta῾āla Knows Best
Wassalāmu ῾alaykum 
 
Ml. Rayhaan Docrat,
Student Dārul Iftā
 
Checked and Approved by:
Mufti Ebrahim Desai
Dārul Iftā, Madrasah In῾āmiyyah