Should I Proceed with an Interest-Based Personal Loan Letter for a Visa Application?
Answered by Shaykh Irshaad Sedick
Question
I need a personal loan letter as proof of funds for my visa application. Despite trying to make the process halal, it involves interest, as the letter must come from a bank requiring an interest-based loan. A non-Muslim is offering to arrange the letter for a fee covering two months of interest. Should I proceed with this or drop the visa process? I feel stuck and unsure of what to do.
Answer
In Islam, interest (riba) is explicitly prohibited, as Allah (Most High) says. “Allah has permitted trade and forbidden interest.” [Quran, 2:275]
However, navigating modern systems often puts Muslims in difficult situations. Your situation involves balancing the necessity of the visa process with the Islamic injunctions against riba.
Assessing Necessity
Islam allows for exceptions to prohibitions in cases of dire necessity. Necessity is defined as a situation where avoiding a prohibited action would cause undue hardship or jeopardize one’s life, safety, or essential needs. Allah (Most High) says, “But whoever is driven by necessity, neither desiring it nor transgressing its limit, there is no sin upon him. Indeed, Allah is Forgiving and Merciful.” [Quran, 2:173]
If the visa is essential for your livelihood, education, or other critical matters, and no permissible alternative exists, it may be permissible as a last resort to proceed with the loan letter. However, if the visa is not a necessity, it would be better to avoid engaging in interest-based transactions.
Exploring Alternatives
Before proceeding, exhaust all possible alternatives, such as:
- Interest-Free Loans: Seek financial help from family, friends, or Islamic organizations offering interest-free loans.
- Non-Bank Institutions: Explore non-bank entities that may provide similar proof of funds without involving riba.
- Visa Agent Assistance: Consult a visa specialist for lawful ways to meet the requirement without taking an interest-based loan.
Non-Muslim Assistance
If a non-Muslim arranges the letter for a fee that covers the interest, the permissibility depends on whether the transaction still indirectly involves you in an interest-based agreement. Ideally, avoid this unless it is the only feasible solution to fulfill a critical need.
Spiritual Guidance
If you feel stuck and unsure, consider performing Salat al-Istikhara (the prayer of seeking guidance). This prayer can provide clarity and help you make a decision in line with Allah’s guidance. The Prophet (Allah bless him and give him peace) said, “If any one of you is concerned about a decision, let him pray two units of prayer…” [Bukhari]
Conclusion
If the visa process is necessary for your well-being and all permissible alternatives are exhausted, you may proceed while repenting and seeking Allah’s forgiveness. However, if it is not essential, it would be better to avoid the loan and prioritize adherence to Islamic principles. Consult a knowledgeable scholar for specific guidance based on your circumstances.
Allah knows best
[Shaykh] Irshaad Sedick
Checked and Approved by Shaykh Mohammad Abu Bakr Badhib
Shaykh Irshaad Sedick was raised in South Africa in a traditional Muslim family. He graduated from Dar al-Ulum al-Arabiyyah al-Islamiyyah in Strand, Western Cape, under the guidance of the late world-renowned scholar Shaykh Taha Karaan.
Shaykh Irshaad received Ijaza from many luminaries of the Islamic world, including Shaykh Taha Karaan, Mawlana Yusuf Karaan, and Mawlana Abdul Hafeez Makki, among others.
He is the author of the text “The Musnad of Ahmad ibn Hanbal: A Hujjah or not?” He has served as the Director of the Discover Islam Centre and Al Jeem Foundation. For the last five years till present, he has served as the Khatib of Masjid Ar-Rashideen, Mowbray, Cape Town.
Shaykh Irshaad has thirteen years of teaching experience at some of the leading Islamic institutes in Cape Town). He is currently building an Islamic online learning and media platform called ‘Isnad Academy’ and has completed his Master’s degree in the study of Islam at the University of Johannesburg. He has a keen interest in healthy living and fitness.
