Housing on interest

Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)


One of our brothers/sisters has asked this question:


I`m residing in India which is a non-muslim country and by the grace of Almighty at present I`m having my own flat which needs to be changed for following reasons :-
1.) Present house is 3.5 kms away from my working place and due to my late arrival after 11 pm at night with cash, it is risky and more during communal riots / tension. Due to this my parents remain awake and are very tensed till my arrival.
2.) Disputes with close relatives residing in neighbourhood flats which is causing exreme mental tension to my parents.
3.) Poor water supply and not a good residential locality.

Recently I have purchased a small plot attached to my working place but I`m lacking funds to build a house on it.Since, I feel that it is most urgent for me to shift from the apartment and even I`m not getting a buyer for such place, I would like to know weather it is permissible for me to take housing loan at minimum rate of interest to build my own house ?

Please, take all my considerations in account and answer at earliest. I`ll be thankful to you.



(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)




Housing on Interest

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person,  no grave, no prophet,  no imam,  no dai,  nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad(saws) is His slave-servant and the seal of His Messengers.


Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278: O Believers!,  fear Allah and give up that ‘riba’ which is still due to you,  if you are true believers.   But if you do not do so,  then you are warned of the declaration of war against you by Allah and His Messenger!


Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276: But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch.   They have been condemned to this condition because they say,  “Trade is just like ‘riba”,  whereas Allah has made trade halaal and ‘riba’ haraam.   Henceforth,  if one abstains from taking ‘riba’ after receiving this admonition from his Lord,  no legal action shall be taken against him regarding the ‘riba’ he had devoured before:  his case shall ultimately go to Allah.   But if one repeats the same crime even after this,  he shall go to Hell,  where he shall abide for ever!   Allah deprives ‘riba’ of all blessing but will give increase for deeds of charity,  and Allah does not like an ungrateful,  sinful person.


Al-Tirmidhi Hadith 2829        Narrated by Ali ibn AbuTalib

Ali heard Allah's Messenger (saws) invoked the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.


Dear and Beloved Brother in Islam, Allah and His Messenger (saws) have specifically declared the concept and transactions of ‘riba’ or usury as haraam, and the taking or giving of ‘interest’, without an iota of a doubt, is a form of ‘riba’.  Thus regardless of one’s conditions, taking an interest bearing conventional loan to build one’s house would fall under the category of what is clearly forbidden in Islam.


As your brothers and sincere well-wishers in Islam, our advice to you would be to either bear with patience your trials and conditions at your present state of housing, rather than seek comfort by indulging in what has been clearly described as forbidden and haraam by Allah and His Messenger (saws).  If you bear with patience your trials in your present condition, and strive to abstain from the haraam only for the sake of Allah Subhanah Alone; it is expected that Allah Subhanah will ease your trial for you and open His doors of Mercy for you. 


Beloved brother in Islam, if you could seek a legal form of finance from an Islamic Bank or Institution to build your house, or any other form of finance which does not deal in interest, there would be absolutely no harm.


Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me.  Allah Alone Knows Best and He is the Only Source of Strength.


Your Brother in Islam,





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