Question Summary:
Can I take out an interest bearing loan?

Question Detail:

salam...i would like to know about personal loan from islamic bank or any other bank which i will invest in land and i will build a building on that land...after that i will sell the flats...whatever i will get, i will pay interest from that profit...is it permissible? i am asking this question second time...please answer ..JAZAKALLAH

Answer :

Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Our understanding of the query in reference is as follows “One intends to take out a personal loan from a bank for investment purposes. The bank will charge interest on the loaned money. Is such an arrangement permissible?”
Based on our understanding as espoused above, our answer hereunder follows:
In principle, it is not permissible for one to take out an interest bearing loan from a bank.
We suggest that you search for alternative Shari’ah compliant investment schemes and banking products.
And Allah Ta’āla Knows Best 
Mawlana Ismail Desai,
Student Darul Iftaa
Durban, South Africa
Checked and Concurred by,
Mufti Faisal bin Abdul Hameed,
Montréal, Canada
 
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Mufti Ebrahim Desai
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