Question Summary:
Taking an interest bearing loan due to constrained circumstances

Question Detail:

Asalamu alaikum, im aware that interest (riba) is haram but what if your situation is really difficult and the bank is offering a loan with a very low rate of interest, also what about if you as a person don't actually mind paying that small extra amount knowing that it will help you out? I mean i can't borrow it of a friend and if i was to i would have to give it back to him in full and thats impossible for me right now. But with a bank loan i can pay it back monthly which is really helpful in my situation. 

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Interest is strictly forbidden in Islam. Allah says in the Quraan:

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُواْ ٱتَّقُواْ ٱللَّهَ وَذَرُواْ مَا بَقِىَ مِنَ ٱلرِّبَوٰٓاْ إِن كُنتُم مُّؤۡمِنِينَ (٢٧٨) فَإِن لَّمۡ تَفۡعَلُواْ فَأۡذَنُواْ بِحَرۡبٍ۬ مِّنَ ٱللَّهِ وَرَسُولِهِۦ‌ۖ ^[1]

Translation: O those who believe, fear Allah and give up what still remains of the riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger.

There are severe warnings in the Ahadith of Nabi-e-kareem ﷺ. Consider the following ahadith:

عَنْ عَبْدِ اللَّهِ بْنِ حَنْظَلَةَ غَسِيلِ الْمَلَائِكَةِ , قَالَ: قَالَ رَسُولُ اللَّهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ:  «دِرْهَمٌ رِبًا يَأْكُلُهُ الرَّجُلُ وَهُوَ يَعْلَمُ أَشَدُّ مِنْ سِتَّةٍ وَثَلَاثِينَ زِنْيَةً» ^[2]

Translation: Abdullah bin Hanzalah narrated that Rasulullah ﷺ said: Eating one dirham of interest knowingly is worse than 36 accounts of Adultery.

Be patient through this difficult times. Suffice on your halaal income and Allah will give you contentment of the heart. On the other hand, taking out an interest bearing loan will bring about the wrath and curse of Allah.

You mention regarding a person facing a difficult situation and the bank is offering a loan at a low interest rate. What about the possibility of the interest rate soaring and all of a sudden the person finds himself stuck in a huge debt? This debt keeps piling on as the person is unable to offset the loan. Imagine the sleepless nights he would spend awake tossing and turning in anxiety? What you thought maybe a means of peace and comfort will end up in permanent grief and anxiety. Rather be underprivileged and burden-less than creating a privilege with a burden.

وَمَنْ يَتَّقِ اللَّهَ يَجْعَلْ لَهُ مَخْرَجًا (2) وَيَرْزُقْهُ مِنْ حَيْثُ لَا يَحْتَسِبُ وَمَنْ يَتَوَكَّلْ عَلَى اللَّهِ فَهُوَ حَسْبُهُ^[3]

Translation: Whoever fears Allah (abstains from sins and fulfils his obligations) Allah will open up ways for him out of every difficulty and Allah will provide sustenance for him from such a place where he did not even imagine. Whoever places his trust in Allah, Allah will suffice him

And Allah Ta’āla Knows Best

Aboobakr Siddeeq bin Mufti Amjad Mohammad

Student Darul Iftaa

Azaadville, Johannesburg, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

_______

^[1]  سورة البقرة - #278

^[2] سنن الدارقطني (3/ 404)

عَنْ عَبْدِ اللَّهِ بْنِ حَنْظَلَةَ غَسِيلِ الْمَلَائِكَةِ , قَالَ: قَالَ رَسُولُ اللَّهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ:  «دِرْهَمٌ رِبًا يَأْكُلُهُ الرَّجُلُ وَهُوَ يَعْلَمُ أَشَدُّ مِنْ سِتَّةٍ وَثَلَاثِينَ زِنْيَةً»

^[3] سورة الطلاق - #2/3

صفوة التفاسير (3/ 376)

{وَمَن يَتَّقِ الله يَجْعَل لَّهُ مَخْرَجاً وَيَرْزُقْهُ مِنْ حَيْثُ لاَ يَحْتَسِبُ} أي ومن يراقب الله ويقف عند حدوده، يجعل له من كل هم فرجاً، ومن كل ضيقٍ مخرجاً، ويرزقه من وجه لا يخطر بباله ولا يعلمه