Cases of Riba-Based Transactions #3
Questions:
1. He bought shares by means of a riba-based loan; what should he do? I bought shares in the stock exchange by means of a riba-based loan and using credit cards, and from my salary, and I have repented to Allaah. How can I make the shares halaal?
Please note that I owe loans and credit card payments to the bank. Is it permissible to sell the shares that I bought from the stock exchange and get rid of some of the loans and the rest from my salary? Or should I pay what I owe on the loan and credit cards via an Islamic bank?.
2. Should he take a riba-based loan to save his father from going to prison? My father owns two pieces of land. He invested one of them in an agricultural project depending on his own money, governmental grants, and an interest-based loan. Since he could not complete his first project, he had to invest the second piece in another agricultural project. But the state here and the agricultural bank do not give money for more than one project at one time. So I rented the second piece of land from my father and wrote it in my name. And thus I considered it helping my father (I do not really run the project, I just did this being good to my father). My father continued his project and became heavily in debt, and became fully dependant on the second loan. That time I knew that the interest-based loans are considered Riba, and that it is considered great sin, no difference in that between the one who takes it, gives it, witnesses it or write it down. Since I refused to sign the second loan, we tried to find another source for money. But it is very difficult to find the needed amount of money in a little time. Especially that we became badly in need for money, as we must spend to take care of the trees or they will die and be lost. My father had to write cheques, without funds in his bank, so he is exposed to be jailed. (In our country if you cannot pay then you will be jailed). Thus he will not be able to pay off his debt; he will lose also his project and his mortgaged land. Are the mentioned above circumstances considered necessity that allows me to sign on the second loan?.
3. He has been sentenced to prison. Can he take a riba-based loan to get out of it? I am thirty years old and I entered Islam six years ago after a bitter struggle with kufr. I was living in France, and I returned to my homeland for good and started a small business, but it did not succeed. I incurred debts of 25,000 dollars and I cannot pay them off. The bank offered me a loan on the basis that I pay it off in three years with interest of 30 percent. Some of the brothers advised me to keep away from riba because it is disobedience towards Allaah, but some men with religious knowledge said: If it is a case of necessity, then there is nothing wrong with that. Today I have been threatened with imprisonment if I do not pay the debts I owe, and I am confused about what to do, whether to accept the loan or spend nine years in prison. The sentence was passed two months ago and I only have one month left. I hope that you can advise me.
4. Regarding riba as permissible. What is the ruling on regarding riba as permissible? Thank you very much.
5. Benefitting from the wealth of a father who deals in riba. I am a young Muslim man and praise be to Allaah my father has some money. He heard a fatwa of Shaykh Tantawi saying that it is permissible to take bank interest, and he put his money in the bank and started to take the interest. I am convinced that this interest is haraam, and I have tried a lot to convince him to give up this notion, but without success. Is there any sin on me, my brothers and my mother? I asked my father to promise not to spend on us from the money that comes from the interest. What do we have to do? If this money is spent on us, what should we do? Allaah has blessed me with work in Saudi and my father paid my travel costs, and I do not know whether this money is from the interest or not. Is the money I get from this work haraam or not? I hope you can advise me.
6. Working in a riba-based bank with no pay in order to learn the accounting and networking systems. I am currently learning about a computer system that uses networks, but I do not have experience. I was told that this system is used in banks. Is it permissible for me to train in a bank that deals with interest (without any salary)? Shall I look for another place to train on such technical matters, knowing that it is difficult to find one, or it is alright to do so?.
7. Opening an account in the bank to have one's wages transferred to it. I went to open an account in the bank out of necessity because my work required me to do that so that my wages could be transferred to it (the bank). I was shocked to learn that the bank charged me extra fees because the account would have less than £5000 deposited in it. They said to me that so long as it is less than £5000, every three months they will deduct £60 and these charges are very high. I asked them to make the account with interest because the interest for every thousand pounds is £52 every three months so they will take the interest and I will pay only eight pounds every three months, and I will not take the interest myself. Is this permissible or should I cancel the interest and pay the fees from my own money? Please note that I do not want to deal with the bank and I do not want to save money in it until it reaches £5000. I will only use it as a means of taking my salary every month, and nothing more. I hope that you will answer me and tell me whether this action is permissible or not.
Answer:
1. Praise be to Allaah.
Firstly:
It is not permissible to take loans on the basis of riba, whether to buy shares or anything else, because riba is haraam and abhorrent and reprehensible, and is a major sin.
Allaah says (interpretation of the meaning):
“O you who believe! Fear Allaah and give up what remains (due to you) from Ribaa (from now onward) if you are (really) believers. And if you do not do it, then take a notice of war from Allaah and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums)”[QS al-Baqarah 2:278-279]
And Muslim (1518) narrated that Jaabir (may Allaah be pleased with him) said: The Messenger of Allaah (peace and blessings of Allaah be upon him) cursed the one who consumes riba and the one who pays it, the one who writes it down and the two who witness it, and he said: they are all the same.
The one who does that must repent to Allaah, may He be exalted, by regretting what has passed and resolving not to do it again in the future. He does not have to do any more than repay the capital, unless he fears harm, in which case he may also pay the haraam interest. If you can hasten to pay it off and get out of dealing with the bank, that is better.
Secondly:
If the shares are pure, then you do not have to sell them; you can keep them even if you bought them with a riba-based loan, as long as you repent to Allaah from riba as stated above.
To sum up: If a person buys something permissible with a riba-based loan, he has to repent to Allaah, and there is nothing wrong with him keeping or making use of the permissible thing, and he does not have to sell it to pay off the loan; rather he should pay off the loan at the appointed time, but if he hastens to pay it off, that is better. And Allaah knows best
2. Praise be to Allaah.
Firstly:
It is obvious to you that taking riba-based loans is haraam, and that it is a major sin which incurs the wrath and punishment of Allaah, and the one who does that is given a threat of war from Allaah. Hence the one who resorts to that rarely succeeds.
Based on this, your father has to repent to Allaah and regret what he has done and resolve not to do it again in the future.
Secondly:
Your father should look for means of getting the money he needs, such as tawarruq, which means buying something to be paid for in installments, then selling it to someone else for a lower price to be paid in cash. Thus he will be able to get money with which to pay off what he owes. Or he may deal in salam, and sell a known amount of produce on the basis that he will hand it over after one or two years, and take the money for it now.
The Prophet (peace and blessings of Allaah be upon him) said: “Whoever pays for something in advance, let him pay in advance for a specified measure and a specified weight, for a specified amount of time.” Narrated by al-Bukhaari (2241) and Muslim (1604).
If he cannot find any permissible means of getting the money to pay off the debt, and that will result in him going to prison and losing the land that is mortgaged to the bank, then this is a case of necessity which makes it permissible to engage in riba.
If your father can take the loan himself, then it is not permissible for you to engage in riba under any circumstances; if he cannot take a loan, we put your question to Shaykh Dr. Khaalid al-Mushayqih (may Allaah preserve him) and he replied that it is permissible for you to take a loan in that case. He said: Undoubtedly riba is haraam and a major sin, and the one who does that is cursed and in a state of war with Allaah. Because that is the case, one should try to avoid it. But the principle is that cases of necessity make forbidden things permissible. If that will lead to harmful consequences for the father, whether it is prison or a penalty and so on, then it seems that there is nothing wrong with it, but if they can find a better way such as a loan and salam and so on, then that is preferable.
O Shaykh: the necessity, in this case, applies to the father and not to the son; is the ruling the same?
He said: Yes, the ruling is the same. End quote.
We also asked Shaykh Dr. ‘Abd al-‘Azeez al-Fawzaan (may Allaah preserve him) the following: There is a man whose father will be imprisoned because of debt; can he take a riba based loan to save his father?
He replied: If he cannot find any other way, then I hope that there will be no sin on him because of necessity but he should hate riba in his heart. End quote. And Allaah knows best.
3. Praise be to Allaah.
Firstly:
To start with, we congratulate you for entering Islam, and we ask Allaah to make you steadfast in adhering to the truth, and to increase you in guidance. You should understand that the Muslim will be tested to find out whether or not he will be sincere in adhering to the faith, and if he is tested, Allaah will expiate his bad deeds thereby and raise him in status, but it is essential for him to seek reward for his calamity with his Lord and not get upset or angry, rather he should be patient and seek reward.
The calamity that has befallen you with regard to your wealth is a test from your Lord, and what you have faced of people’s refusal to help you is another test. Be patient, for you are following the truth; adhere to the path of piety for Allaah has promised those who are pious and fear Him that He will grant them a way out from their difficulty and He has promised them provision by His bounty. Allaah says (interpretation of the meaning):
“And whosoever fears Allaah and keeps his duty to Him, He will make a way for him to get out (from every difficulty). And He will provide him from (sources) he never could imagine” [QS al-Talaaq 65:2-3]. “and whosoever fears Allaah and keeps his duty to Him, He will make his matter easy for him”. [QS al-Talaaq 65:4]. “and whosoever fears Allaah and keeps his duty to Him, He will expiate from him his sins, and will enlarge his reward”[QS al-Talaaq 65:5]
Secondly:
You should understand that riba is something that is definitively forbidden in shari'a, and it is a major sin.
Thirdly:
You should understand that it is permissible to do the things that are forbidden in shari'a if the Muslim is excused due to being forced to do them or being compelled by necessity. Allaah says (interpretation of the meaning):
“But if one is forced by necessity without willful disobedience nor transgressing due limits, then there is no sin on him. Truly, Allaah is Oft-Forgiving, Most Merciful”[QS al-Baqarah 2:173] “He has explained to you in detail what is forbidden to you, except under compulsion of necessity” [QS al-An’aam 6:119]
But we should point out three things here:
1 – Necessity with regard to riba has to do with the borrower not the lender. There is nothing that makes the lender compelled to lend a loan with riba, unlike the need for a loan, for the borrower may find that all doors are closed to him and he has no choice but to take a loan with riba interest.
According to a fatwa issued by the Islamic Research Council in Cairo during its second conference held in Muharram 1385 AH (1965 CE) it says:
Interest on all types of loans is all haraam riba, and there is no difference what the loan is called. A lot of interest or a little is still haraam, and giving loans with riba is haraam and is not made permissible by need or necessity. The same applies to borrow with riba. It is all haraam unless there is a necessity, and every person is responsible for deciding whether his case is, in fact, one of necessity. End quote.
It says in al-Mawsoo’ah al-Fiqhiyyah (6/167): “It is permissible for one who compelled by necessity to engage in a riba-based transaction, and the lender is sinning but the borrower is not in that case. End quote.”
2 – The reason for the borrower who borrows money involving riba doing this haraam action should be a necessity, not a need that he can do without. Necessity has to do with harm that will affect his religious commitment, physical well-being, reason, honour or wealth – which are called the “five essentials” – and not just hardship that can be put up with, rather it should be a case of necessity that may cause him to die or lose one of his limbs or physical faculties or be imprisoned for a long time or develop a chronic illness.
Abu ‘Abd-Allaah al-Zarkashi (may Allaah have mercy on him) said: “Necessity means that if he does not consume the forbidden thing he will die or nearly die, such as one who is forced to eat or wear clothes in a case where if he remains hungry or naked he will die, or lose a limb or physical faculty. This is what makes consuming the haraam thing permissible.”
Need refers to a hungry person who, if he does not find something to eat, will not die, but he will suffer hardship. This does not make the haraam thing permissible. (Al-Manthoor fi’l-Qawaa’id (2/319).
In Nazariyyat al-Daroorah al-Shar’iyyah (p. 67, 68) it says: Necessity is that which places a person in danger or severe hardship such that he fears that he may lose his life or be harmed with regard to his physical well being, honor, mental well being, wealth and the like. In that case it becomes permissible for him to commit a haraam deed, or to refrain from or delay an obligatory deed so as to ward off harm that he thinks most likely to befall him, within the limits of shari'a”. End quote.
3 – The harm that will befall you if you do not pay should be definite or most likely to happen, and it should not be imaginary.
Many people are indulging too much in riba-based loans, and they regard buying a house or car, or changing the furniture, or buying a cell phone as necessities, and they started to deal with riba-based institutions on the basis of such excuses, and they have found people who will issue fatwas to them concerning these things.
Similarly, many people do not understand what is meant by necessity, so they start to look for riba-based banks and institutions so that they can borrow with riba interest, without looking for permissible ways of getting the money they need. Among the ways that Islam has permitted the one who does not have money to get it is by doing permissible work, or borrowing from someone without riba, or buying a product by installments and selling it for cash. It should be noted that many of these people may be entitled to zakaah, and there is nothing wrong with them asking for it from the institutions that collect zakaah from the Muslims.
What we think with regard to your case is that if you can get the money in a way that is permissible according to shari'a, then you have no excuse for taking a riba-based loan. If you can pay the money that you owe in installments, then you also have no excuse. But if you cannot get the money in a permissible manner, and not paying the money will result in you being imprisoned, then we hope that you will be one of those who are excused and compelled by necessity to engage in riba, and there will be no sin on you, rather the sin will be on the one who lends you money on the basis of riba, and on those who knew of your situation and did not help you when they could.
You should understand that the scholars say that necessity should be evaluated properly. What this means in your case is that it is not permissible for you to take from the bank anything but the amount that will save you from harm. It is not permissible for you to take more than that. We must also point out that if you can afford it after that, you must hasten to pay the bank back if by doing so you will spare yourself from paying all or some of the interest.
We ask Allaah to help you to fear Him and do righteous deeds, and to make you independent of means by His bounty, and to save you from sin, and to make you steadfast in adhering to the truth, and to increase you in guidance. And Allaah knows best
4. Praise be to Allaah.
Riba is forbidden according to the Qur’aan and Sunnah, and definitive scholarly consensus. Whoever regards it as permissible is a kaafir, because the basic principle is that whoever rejects something on which there is obvious scholarly consensus is guilty of kufr.
Shaykh al-Islam Ibn Taymiyah (may Allaah have mercy on him) said: The belief that the well-known obligations are obligatory and that the well-known prohibitions are forbidden is one of the most important basic principles of faith, and the one who rejects that is a kaafir according to scholarly consensus. (Majmoo’ al-Fataawa, 12/497).
Ibn Qudaamah (may Allaah have mercy on him) said: Whoever believes that something is permissible when there is consensus that it is forbidden and the ruling thereon is well known among the Muslims and the texts leave no room for doubt concerning it – such as pig meat, adultery and the like, concerning which there is no difference of scholarly opinion – is guilty of kufr. (Al-Mughni, 12/276)
Al-Nawawi (may Allaah have mercy on him) said: But nowadays Islam has spread and the knowledge that zakaah is obligatory is well known to the elite and commoners alike; the scholar and the ignorant are both aware of it. So no one has any excuse for misinterpreting (the texts) and denying it. The same applies to everyone who denies any matter of religion on which the ummah is agreed, if knowledge of it is widespread, such as the five daily prayers, fasting the month of Ramadaan, doing ghusl to cleanse oneself of janaabah (impurity following sexual activity), the prohibition on adultery, alcohol and marrying mahrams, and other rulings, unless he is new in Islam and does not know its rulings, in which case if he denies something out of ignorance he is not guilty of kufr… But with regard to matters on which there is consensus but which may only be known by those with specialized knowledge, such as the prohibition on being married to a woman and her paternal aunt or maternal aunt at the same time, or that the one who kills with intent cannot inherit (from his victim), or that the grandmother is entitled to one-sixth (of the estate), and other such rulings, then whoever denies them is not guilty of kufr, rather he is to be excused because knowledge of these things is not widespread among the common folk.
Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said: The ruling on riba is that it is haraam according to the Qur’aan and Sunnah and scholarly consensus. It is classified as one of the major sins, because Allaah says (interpretation of the meaning): “but whoever returns (to Ribaa), such are the dwellers of the Fire — they will abide therein” [QS al-Baqarah 2:275]. “And if you do not do it, then take a notice of war from Allaah and His Messenger”.[QS al-Baqarah 2:279]
and because the Messenger of Allaah (peace and blessings of Allaah be upon him) cursed the one who consumes riba, the one who pays it, the two who witness it and the one who writes it down. So it is a major sin. There is the scholarly consensus that it is forbidden, hence whoever denies that it is forbidden although he lives in a Muslim environment is an apostate, because this is one of the obviously forbidden things on which there is a consensus.
But if we say this, does that means that the scholars are agreed on all forms of riba? The answer is no; there is a difference of opinion concerning some forms of it. This is like what we have said about zakaah being obligatory according to consensus, but despite that there is no consensus on every form of it. They differed concerning the zakaah on camels and oxen that are used for farming or irrigation, and they differed concerning the zakaah on jewelry and the like, but in general the scholars are agreed that riba is haraam and is a major sin. (Al-Sharh al-Mumti’ ‘ala Zaad al-Mustanqi’, 8/387 )
Based on that, it may be said: “Whoever denies that riba is forbidden is a kaafir, because the fact that it is forbidden is one of the matters indicated by the texts, and the scholars are obviously agreed that it is haraam, and this is well known among the Muslims. “ But if he denies that a specific form of riba is forbidden, concerning which there is a difference of opinion among the scholars or there is no consensus that it is obviously forbidden, then he is not a kaafir; rather his case should be examined further. He may be a mujtahid who will be rewarded for his ijtihad, or he may be excused, or he may be an evildoer if by regarding this as permissible he is following his own whims and desires. And Allaah knows best. May Allaah send blessings and peace upon our Prophet Muhammad.
5. Praise be to Allaah.
There is no sin on the children of one who deals in riba even if he spends purely riba-derived money on their food, clothes or travel, if they have no other way of earning a living. They have to advise their father in the manner which they think will be most effective. If it is easy to find other means of earning a living, or they do not need that money for the essentials of living, then they have to do without it.
Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said: If the father’s earnings are haraam, then it is essential to advise him. Either you can advise him yourselves, if you are able to do that, or you can seek the help of scholars who can convince him or of his friends who may be able to convince him to avoid these haraam earnings. But if that is not possible then you may benefit from it as much as is necessary, and there is no sin on you in this case, but you should not take more than you need because of doubts as to whether it is permissible to benefit from one whose earnings are haraam. (Fataawa Islamiyyah, 3/452).
If a father who deals in riba dies, his heirs must get rid of the riba-based money by returning it to its owners if they are known. Otherwise they should get rid of it by spending it in charity, whether that is given individuals or to institutions. If it is too difficult for them to find out exactly how much of their father’s wealth is riba-based, they should divide it in half, taking one half and distributing the other half.
Shaykh al-Islam Ibn Taymiyah was asked about a man who dealt in riba, and who left behind wealth and a son who knew his father’s situation – was the wealth permissible for the son as inheritance or not? He replied: with regard to the amount that the son knows is riba-based, he should get rid of it, either by returning it to its owners if possible, and he should not give it in charity. The rest is not haraam for him. With regard to the amount concerning which there is doubt, it is mustahabb for him not to take it unless it is needed to pay off a debt or to spend on dependents. If the father died when engaging in riba-based transactions that are allowed by some fuqaha’, it is permissible for the heir to benefit from them. If the halaal and haraam are mixed and the extent of each is unknown, it should be divided into two halves. (Majmoo’ al-Fataawa, 29/307). And Allaah knows best.
6. Praise be to Allaah.
It is not permissible to work in riba-based banks, with or without a salary, because the one who works in them will either be dealing directly with riba by recording or witnessing it, or he will be helping with it in some way. The riba-based banks are places of great evil in which a major sin is committed and there is no guarantee that the one who sits in such a place will not be subjected to the curse of Allaah of which He has warned those who engage in riba. There is also no guarantee that the one who trains in such a place will not be tempted by his self that is inclined towards evil to carry on working there because of the temptation he finds there.
Hence we say that it is not permissible to work or train in riba-based banks. You should look for another place that is free of sin, and you will find it in sha Allaah. We ask Allaah to help and guide you. And Allaah knows best.
7. Praise be to Allaah.
Firstly:
If opening the account in this bank was done out of necessity for the transfer of wages and the like, that is permissible because of necessity and there is nothing wrong with you paying fees to the bank in return for that, because it is only paying fees for the transfer.
The scholars of the Standing Committee said: Depositing money in riba-based banks is not permissible. With regard to transferring money through the bank, if the request comes from the company and there is no other bank apart from the bank that is riba-based, then it is permissible to make the transfer through the bank because of necessity. End quote.
Fataawa al-Lajnah al-Daa’imah, 13/372; see also: Fataawa al-Lajnah al-Daa’imah, 13/370.
Shaykh Ibn Baaz (may Allah have mercy on him) said: If it is necessary to transfer money via the riba-based bank, there is nothing wrong with that in sha Allah, because Allah says (interpretation of the meaning):“He has explained to you in detail what is forbidden to you, except under compulsion of necessity” [QS al-An‘aam 6:119]
Undoubtedly transferring money through the bank is a very common necessity nowadays.
If it is possible to make the transfer through an Islamic bank or through permissible means, then it is not permissible to do the transfer through the riba-based bank. The same applies to making deposits; if it is possible to deposit money into Islamic banks or Islamic businesses, then it is not permissible to deposit it in riba-based banks, because it is no longer a matter of necessity. End quote. Fataawa Islamiyyah, 2/879
Secondly:
It is not permissible to open an interest-bearing account in the bank with the aim of paying off the fees charged by the bank for its work, because the prohibition on riba is not for the sake of the bank, so that we can take from it and give to it; rather the prohibition has to do with the rights of Allah, whether we are going to pay it or not, and whether the original transaction is permissible or forbidden. None of that makes it permissible for us to engage in a haraam transaction in order to pay the fees for the original transaction.
Shaykh Ibn Baaz (may Allah have mercy on him) was asked: Is it permissible for me to make a deposit in the bank in return for interest in order to pay taxes that I have to pay as a result of this interest? He replied: That transaction is not permissible, because it is a riba-based transaction that it is not permissible to do, because Allah says (interpretation of the meaning): “Allaah has permitted trading and forbidden Riba” [QS al-Baqarah 2:275]. End quote. (Majmoo‘ Fataawa Ibn Baaz, 19/211 ). And Allah knows best.
(Source: https://islamqa.info/en/answers/ ). The related questions were combined.
*************************(Source: https://islamqa.info/en/answers/ ). The related questions were combined.
Answered by Islam Q&A Team, generally supervised by Syaikh Muhamed Salih al-Munajjid. Editor: Ustaz Sofyan Kaoy Umar. email: ustazsofyan@gmail.com