Question:-
If someone buys a property or business on the basis of interest, will the increased value of the property/business also be Haraam? For example, a person took a loan of $100 000 to buy a property/business, and after two years it’s now valued at $140 000.
If he sells it at that time, will it be haram for him to make use of the $40 000?
Answer:-
We understand from your query that a person took an interest bearing loan of $100 000.00 to purchase a property. Two years later, the property is now valued at $140 000.00 which he intends selling for $140 000.00.
In the above scenario, the person will be sinful for borrowing money on interest. Rasulullah Salallahu Alaihi Wasallam cursed the person that pays interest. He should therefore sincerely repent to Allah Ta’ala for engaging in such a transaction and settle the interest-bearing loan as soon as possible. However, the $40 000.00 profit accrued from the sale of the property will be permissible for him to use.
عن ابْنِ مَسْعُودٍ رَضِيَ اللَّهُ عَنْهُ : أَن رَسُولَ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وسلّم لعن آكل الربا، ومُوكِلَهُ، وشاهِدَيه، وَكَاتِبَهُ، والمُحَلِّلَ، والمُحَلَّلَ لَهُ (ابن حبان)
ALLAH TA’ALA KNOWS BEST!
ANSWERED BY:
Mufti Mohammed Desai
Date: 09 Shawwal 1443 / 11 May 2022
