Interest

Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party.

135065

Loan . Interest . Students

I took a student loan last year and applied this year too. Now that the classes have started and the loan has been approved I found out that it is with interest. My heart is very restless, what should I do?

Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 1 month ago

It is allowed to take what is known as Student Loan from Non Muslim authoraties even if you know that they will charge interest. You can pay it as you pay taxes to the authorities. It is not obligatory to take such loan but it is allowed.

Wassalam.

127825

Interest . Employment . Loan

Can I work as an employee in a financial company that offers loans on interest to customers?

Muslim is not allowed to work in usury (RIBA) dealing. If the job is away from usury then it will be allowed, but if it is related to usury in any way like taking, giving, accounting etc then it will be not allowed.

Wassalam.

123886

Bank . Interest . Employment

Is it allowed to undertake an apprenticeship at an investment bank leading to an undergraduate degree and possibly a job where you work in areas not directly related to interest?

Working in any job in the bank which is connected with usury is not permissible. If the job is away from usury then it is permissible.

Wassalam.

123347

Interest . Bank . Loan . Employment

Can I learn programming at a company that develops software for banks that give out interest bearing loans?

Learning programming is allowed in any company or school or college, but indulging with interest (RIBA or usury) is not allowed for Muslims.

Wassalam.

121711

Interest . Bank . India . Sadaqa (Charity)

What can we do with the interest from a bank account in India? Can we withdraw it and give it to charity? Shall we tell the receiving person that it is from interest? Or shall we just leave it in the account and not touch it?

There is no point in leaving it in the account because it will utilised by the non Muslim bank with no benefit to you or to any poor person. Utlizing interest from non Muslim is allowed according to verdicts of leading scholars ( Maraaje' of Taqleed). You can utilize the money or give it to the poor and you don't need to tell them that it is from bank interest money.

Wassalam.

121517

Interest . Loan

Is it permissible to take out loans with interest? Does it depend on who the loan is taken from?

It is not allowed to take loan with interest from Muslim or any bank or financial institution owned by Muslims.

It is allowed to take from non Muslim any amount in a lawful way to be used in a lawful way even if you know that non Muslim will charge you interest which you pay it as you pay taxes or service charges to the non Muslim as part of their financial practice.

Wassalam.

118299

Sunni . Interest . Sunni-Shi'a

I am Sunni, but as time passes I feel that I want to know more about Shia. I have an interest that I cannot seem to stop and I now feel that something is calling me to the Shia path. What can be the reason?

Sincere servants of Allah who are really after the truth, are always attracted to the truth by many ways. Allah (SWT) says in Quran : Those who strive for Our sake, We will guide them to Our way.(Sura 29, verse 69).

It is a big bounty from Allah on you to be attracted to know more about Shia Islam because it is the original Islam of the Prophet and Ahlul Bayt (AS). Keep on thanking Allah for His bounties.

Knowing more about real Islam will make you more near to the truth. You will be then helping yourself to gain the Paradise and be with the Prophet (SAWA) and his Progeny Ahlul Bayt (AS).

There are many useful websites which might help in getting more information in this regard e,g, www.Islam.org, www.rafed.net, www.Al-Shia.org, www.shiasearch.org and many other useful websites.

Wassalam.

67570

Spirituality . Interest . Credit Card

Does owning or using a credit card adversely affect one's spirituality due to the element of interest?

Owning and using Credit Card is allowed as far as you utilize the money of non Muslim banks or financiers in lawful way.

Wassalam.

111212

Interest . Investment

If a company's core business is Halal but they have interest income reported in their financial statements, is it permissible to buy their shares in the absence of clarity whether that interest income is from bank or lease agreement or from other sources?

Yes you can buy shares of such company as far as their business activities are lawful according to Islam and you don't know that they take interest from Muslims in usury.

Wassalam.

112352

Interest . Bank . Non-Muslims

I understand that a Muslim is allowed to receive interest from non-Muslims who give it as part of their usual financial dealings. On this basis, is it also allowed to buy shares of non-Muslim banks?

No. There is a big difference between these two situations. Receiving interest from non Muslims as part of their practice, does not mean that you can invest your money in the bank as a share holder. Muslim is not allowed to buy shares of any company indulged in unlawful (Haraam) business.

Wassalam.

105051

Interest

Is it allowed to pay rent to someone whose main business is lending money on the basis of interest?

As far as you are renting his property, you must pay the rent to him, no matter what is his business.
Wassalam.

104598

Interest . Investment . Stock . Loan

Is it allowed to invest in stocks of companies that are financed by interest-bearing loans even though the company produces Halal products?

If the company is dealing with Halal products only and the finances were taken from non Muslim banks or financial institutions, then it is allowed to invest in its stocks.

Wassalam.