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 bank account?
- If the above scenario is considered permissible, would it then be allowed for the person to keep their interest-bearing bank account open specifically for the purpose of using the accrued interest to finance vehicle purchases in this manner?
- Is it permissible to open an interest-bearing bank account with the intention that the funds acquired through interest will not be used for personal benefit, but rather will be donated or used to support the poor and those in need?
- Would it be permissible to utilize funds acquired through interest for the construction, maintenance or operation of a masjid, madrasah, or any other type of Deeni work?
Answer:-
- It is Haraam to finance a vehicle through the banks, hence sincere Taubah is required. However, if one has accrued interest from the same institute then it may be used to offset the interest charges.
- It is not permissible to have a bank account with the intention of accruing interest. Yes, the interest that may have accumulated in the past may be used to offset the interest charges.
- This has been answered above in #2, that it is not permissible to do so.
- Interest funds cannot be used for Deeni work or organizations.
ALLAH TA’ALA KNOWS BEST!
ANSWERED BY:
Mufti Mohammed Desai
Date: 30 Shabaan 1445 / 11 March 2024
