Taking an amount as loan
Question:
I want to take loan from an organization which is government based. They are charging a specific % of interest on loan e.g. 8%. I want to construct my own house as well as to start a business from that loan. I don't have enough resources to start both without getting of loan. I am confused about the interest charged by the organization. Please guide me in the light of Islam that the payment of interest by me is Halal or Haram.
Waiting for the answer.
Answer:
In my understanding not all kind of interest is that riba that the Qur'an condemns. It is only usury that is riba and the normal highly regulated commercial interest that is available today is not usury.
Therefore in my view there is noting wrong with you borrowing this amount.
Even if this was riba, still it is charging riba that is haram and not paying riba. Please read the following related topics for more details on this.
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Related Topics:
- Paying Interest for a Loan (Followup: Hadith on Cursing Those Involved)
- Why Paying Interest Is Not Haram?
- Discouragement of Interest System
- Interest on Mortgage and Business Loan
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Farhad Shafti
April 2017
I want to take loan from an organization which is government based. They are charging a specific % of interest on loan e.g. 8%. I want to construct my own house as well as to start a business from that loan. I don't have enough resources to start both without getting of loan. I am confused about the interest charged by the organization. Please guide me in the light of Islam that the payment of interest by me is Halal or Haram.
Waiting for the answer.
Answer:
In my understanding not all kind of interest is that riba that the Qur'an condemns. It is only usury that is riba and the normal highly regulated commercial interest that is available today is not usury.
Therefore in my view there is noting wrong with you borrowing this amount.
Even if this was riba, still it is charging riba that is haram and not paying riba. Please read the following related topics for more details on this.
-----------
Related Topics:
- Paying Interest for a Loan (Followup: Hadith on Cursing Those Involved)
- Why Paying Interest Is Not Haram?
- Discouragement of Interest System
- Interest on Mortgage and Business Loan
--------
Farhad Shafti
April 2017
