Interest on Mortgage and Business Loan
Question:
1 - How you see the paying interest in home mortgage?
2 - Getting loan for investment property and paying interest to bank would be halal, whereas the banks have interest based system?
3 - Getting interest based loan from the bank and doing business with this loan would be halal?
Answer:
Allow me to answer all the three questions and any similar questions with two points:
1. In my understanding riba is not any kind of interest. Riba is an interest that exploit the payer of interest, some refer to it as usury. In the curreny highly regulated banking system I do not consider the interest of loans or mortgages to be usury and therefore I do not consider this to be riba. You can find references for this view here.
2. It is receiving the usury and not paying it that is condemned in the Qur'an. The usury payers are the victims of a usury transaction and the instruction of the Qur'an in forbidding usury was to protect them not to condemn them.
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Related Topics:
- Paying Interest for a Loan
- Getting Interest from Bank for Charity
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April 2013
Revised: July 2016
1 - How you see the paying interest in home mortgage?
2 - Getting loan for investment property and paying interest to bank would be halal, whereas the banks have interest based system?
3 - Getting interest based loan from the bank and doing business with this loan would be halal?
Answer:
Allow me to answer all the three questions and any similar questions with two points:
1. In my understanding riba is not any kind of interest. Riba is an interest that exploit the payer of interest, some refer to it as usury. In the curreny highly regulated banking system I do not consider the interest of loans or mortgages to be usury and therefore I do not consider this to be riba. You can find references for this view here.
2. It is receiving the usury and not paying it that is condemned in the Qur'an. The usury payers are the victims of a usury transaction and the instruction of the Qur'an in forbidding usury was to protect them not to condemn them.
----------
Related Topics:
- Paying Interest for a Loan
- Getting Interest from Bank for Charity
----------
April 2013
Revised: July 2016
