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:

Dear brother Burhan,

A`salam u alaikum

Please clarify my doubt about interest in the following situation.

 

Can one pay interest on a loan from the interest one may earn from any source. Since interest is haram one can not use it for personal use but can it be used to pay interest that is due. In our place there are no Islamic banks and I have to avail loans for my business.

Thanks. 

 

(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.)

 

Answer:

 

Pay Interest on loans

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 and His Messenger (saws) have indeed declared the receiving and paying of ‘riba’ Haraam in very strong terms,  and it is the prescribed duty of every believer,  who sincerely believes in Allah and the Last Day,  to abstain from ‘riba’.

 

Allah says 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 4 Surah Nisa verse 161:

That they took ‘riba’,  although they were forbidden.  And that they devoured men’s substance wrongfully.   We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

 

Dear and beloved brother in Islam, we cannot emphasize and stress enough how much the taking of ‘riba’ is hated and despised by Allah Subhanah, the Lord of the Worlds!  Under no circumstances are the believers who sincerely fear Allah and the Last Day allowed to accept or take or consume even a cent of ‘riba’; thus first and foremost it is your duty as a believer to put an immediate stop to all sources which produce riba income.

 

Your Question: Can one pay interest on a loan from the interest one may earn from any source.

Al-Tirmidhi Hadith 2829        Narrated by Ali ibn AbuTalib

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

 

Islam neither allows or permits the taking of riba, nor does it allow or permit the paying of riba!  

 

The best solution in your case would be to liquidate the investments which give you riba income, and invest the principal into your business…that way neither will you receive interest nor pay interest; both of which are absolutely unlawful and impermissible for the believers who sincerely fear Allah and the Last Day.

 

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

 

Your brother and well wisher in Islam,

 

 

 

Burhan