Question Summary:
Can i Avail of this facility? Is this Halaal or Is it better for me to avoid the transaction if it is not really necessary at the moment?

Question Detail:

My Question is. i am working in Dubai. I have a credit card which i am not using at the moment since i wanted to avoid any chance of getting related to interest. Now the bank is offering me a big amount as loan specifying it as interest fee, payable back in 18 equal installments. the only  involved charge is 200Dhs as processing fee, which is fixed for any amount you take. But if you plan to preclose the amount then you have to pay 2% of the existing amount as closure fees.
Can i Avail of this facility? Is this Halaal or Is it better for me to avoid the transaction if it is not really necessary at the moment?

Answer :

In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
You did not state what was the loaned amount and what amount is payable. We could then acertain the Sharii ruling on the matter. The 200 Dhs or 2% closure fees seem to be different from the excess on the loaned amount. In principle, if the amount that is payable is more than the loaned amount, that will be interest. If this is the structure of the facility offered to you then it is not permissible.
And Allah knows best
Wassalam
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah