Loan

In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient (i.e. the borrower) incurs a debt, and is usually liable to pay interest on that debt until it is repaid, and also to repay the principal amount borrowed.

105752

Loan . Sin . Students . Education

I took out a student loan in order to complete my business degree at university. Was this a sin and is it allowed for me to gain employment or any other benefit on the basis of this degree?

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 2 months ago

It is allowed to take money from the government to meet studying expenses and repay it later on after employment according to the agreement.

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.

101730

Interest . Loan . Western Society . Investment

As someone who lives in the West, can I buy shares of American companies that have debt and pay interest on their loan that is taken to finance or expand their business?

It is allowed to buy shares of any company which does not do Haraam business like alcohol, gambling, pork etc.

Company with whole allowed business but taking loans from the non Muslim banks, does not make the company Haraam.

Wassalam.

100520

Loan

What happens if the person you owe money to forgets about the debt?

Muslim must give back the rights of others in any possible way. Debts should be written to save the rights of others as we read in Quran (O you who believe, when you take a loan for an agreed time, you should write it down) (2:282).

The person who gave the money should remind the person who took the loan and present evidence including witness or any other supporting evidence. If the person who took the money denies remembering the loan, he should be asked to take an oath by Allah that he did not take any amount.

Claimant needs to prove while opposite party needs to take oath. البيّنة على من إدّعى واليمين على من أنكر.

'Wassalam.

99280

Brother . Money . Father . Loan

My brother entrusted me with his money and my dad asked that I should lend him some money from it. Am I allowed to do that?

Zaid Alsalami, Shaykh Dr Zaid Alsalami is an Iraqi born scholar, raised in Australia. He obtained a BA from Al-Mustafa University, Qom, and an MA from the Islamic College in London. He also obtained a PhD from... Answered 5 months ago

Bismihi ta'ala

If you know that your brother would be ok with you using his amanah in a wise and responsible way, and that you would return it back to your brother once he asks for it, then you are allowed to lend that money to your father.

And Allah knows best.

96415

Loan . Money . Khums

If I have given a loan from money on which I have already paid Khums, do I have to pay Khums on it when it is repaid to me and I do not use it for my expenses in that year?

If you have already paid it's Khums, then no Khums again on the remaining amount because it has been already purified by paying its Khums.

'Wassalam.

57058

Khums . Home . Loan . Mortgage

In the new Khums ruling on setting off home mortgage loans, if the needs of the household change and they move to a bigger home, can the "original draw-down amount" be increased to take into account a remortgage that is purely to move home?

Yes, it is allowed if it is necessary.

Wassalam.

84034

Income . Social Media . Loan

Is it allowed to earn an income from social media marketing for a company that raises funds to give loans to building owners?

Any business which deals with interest is not allowed in Islam. Raising funds for loans with interest is also not allowed.

Social media marketing is like any other type of marketing, must avoid Haraam businesses.

Wassalam.

74791

Loan . Bank . Interest

If we are going through financial difficulties, are we allowed to take a loan from any Islamic bank that does no interest?

Seyed Ali Shobayri, Seyed Ali Shobayri is of mixed Iranian and Scottish descent who found the path of the Ahlul Bayt (a) by his own research. He holds a BA in Islamic Studies from Middlesex University through the... Answer updated 1 year ago

Bismillah,

Asalamu Alaykom,

Such loan is permissible to take. Some scholars also allowing taking loans with interest if it is absolutely necessary and the person is in much hardship.

May Allah grant you success

71226

Interest . Loan

Is it permissible to charge interest on money loaned to someone?

Abbas Di Palma, Shaykh Abbas Di Palma holds a BA and an MA degree in Islamic Studies, and certifications from the Language Institute of Damascus University. He has also studied traditional Islamic sciences in... Answered 1 year ago

as salam alaikum

usury, or charging interest on money loaned, is one of the major sins and therefore it is not permissible.

With prayers for your success.

69103

Khums . Loan

I had lent money to a person last year. Was it a deductible expense for that Khums year? He has repaid the loan this year. Do I now have to pay Khums immediately on the repaid amount or at the end of the current Khums year on whatever remains from it?

The amount which you lent last year was supposed to be calculated in your Khums of last year but as it was not with you, you did not pay its Khums. When you received it back, you must pay its Khums immediately.

Wassalam.

64811

Mortgage . Loan . Intention

Is it permissible to buy a house on mortgage from a non Muslim bank in the UK? And what does the concept of taking mortgage loan with the intention of securing the money actually mean?

Yes, it is permissible to buy a house on mortgage from a non Muslim bank.

This is according to the most learned scholars who are known as Maraaji' of Taqleed.

Wassalam.