Is Interest Based Loans Allowed With Harbi Non-Muslims?

Answered by Mawlana Ilyas Patel

Question

I came across this video by a Mufti sahib, stating that it is permissible to enter into interest-based loans with “Harbi” non-Muslims, according to the Hanafi Madhab, given that there are clear economic benefits. This is the first I have ever heard of such an opinion.

The Mufti goes on to say Muslims in the UK can take out interest-based loans from “Harbi” non-Muslims to buy a house since not doing so will put them at an economic disadvantage in the West. Could you please clarify this matter?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

I pray you are in good faith and health. Thank you for your question.

It is our position that a conventional interest-based mortgage is unlawful. We do not agree with the view that one’s first house is permitted through an interest-based mortgage. See the links below. [Taqi Usmani, Fiqh al-Buyu‘]

I would like you to go through the valuable answers and links below. You will receive guidance and direction, in sha’ Allah.

Related:

• Is It Permissible To Purchase a Home With a Mortgage?
• Mortgage Archives
• How to Avoid Riba (Usury): A Reader

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I pray this helps with your question.
Wassalam,
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani

Mawlana Ilyas Patel is a traditionally trained scholar who has studied in the UK, India, Pakistan, Syria, Jordan, and Turkey. He started his early education in the UK. He went on to complete the hifz of the Quran in India, then enrolled in an Islamic seminary in the UK, where he studied the secular and ‘Aalimiyya sciences. He then traveled to Karachi, Pakistan. He has been an Imam in Rep of Ireland for several years. He has taught hifz of the Quran, Tajwid, Fiqh, and many other Islamic sciences to children and adults onsite and online extensively in the UK and Ireland. He taught at a local Islamic seminary for 12 years in the UK, where he was a librarian and a teacher of Islamic sciences. He currently resides in the UK with his wife. His interest is a love of books and gardening.