Banking/ Interest

Purchasing a Property on Riba

QUESTION: A family member has bought a house in South Africa, while she is residing in Canada. She bought the house through the bank, and is renting it out for a year until she returns. Would this fall under Riba, or is the transaction in order? ANSWER: If your cousin...

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Receiving interest in a bank account

QUESTION: I receive interest in my bank account every month. I dispose of the interest amount from the cash I have on hand and do not remove it from the account. Is this allowed? ANSWER: It is not permissible to dispose interest funds accumulated in one’s bank account...

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Opening Bank Accounts

QUESTION: It is not permissible to intentionally accumulate interest money. 1. If a person has an option at a bank to open a bank account whereupon one does not accumulate interest but opts for using another account, will this be considered as intentionally...

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Usage of interest funds

Question:- If a person has financed the purchase of a vehicle using the conventional banking system, involving interest, would it be permissible for them to offset or pay the interest charged from funds acquired through interest accrued in their personal / business...

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Using interest funds on Madrasah students

Question:- Can interest money be given to Zakaatable Madrasah students book their tickets to go home? Answer:- The recipients of interest are individuals that are eligible to receive Zakaat. However, we advise that poor students should be assisted with Zakaat and...

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Giving a loan in lieu of interest

Question:- I needed clarity on the following matter. I am providing capital to a friend for his business. This money is given as a Loan and will be paid back when I request.. The businessman uses the money, buys drinks and resells it to shops . We made an agreement...

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Interest on loans

QUESTION: If a person is in debt and takes a loan from a family member, is the family member allowed to make a profit from this transaction? For example, the monthly amount to pay back is clear but instead of paying the loan over 48 months, 5 extra months are added...

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