Loan

What does Islam say regarding student loans that have interest linked to inflation? Student loans work as following: A student borrows £16,000 this year when the inflation rate is 2.5%. He does not have to pay it back until he is employed (after graduation). However, the money has to be paid back at the new inflation rate at the time of repayment. If the inflation rate increases, then the nominal value to be paid back will increase, thus the student may have to pay back around £24,000 instead of the original £16,000. Is this disparity of figures between the original sum and the new sum, regarded as riba or an element of riba? notes: the rate of interest charged on the loan balance will be equivalent to the rate of inflation. This will mean that what you repay will be no more, in real terms, than the amount you borrowed. The rate of inflation is measured according to the Retail Prices Index (RPI), which varies from time to time. Is it at all permissible to take a Riba-based loan for study? Thanks, and sorry for this long question.

In the Name of Allah, Most Gracious, Most Merciful.All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear brother in IslamAl Salam alaykumI am a Swiss Muslim live in Switzerland. I live in a rented house for around 10 yeas; this house has 2 floors, 2 families live in this house each floor one family. The owner of the house wants to sell the house to one of these 2 families (my family or other family). The owner propose us first as we are living in this house much longer than the other family.We want to buy house because our children grew up and go to school in this area abd my old father lives in the same street and. The house cost 1550000 Swiss Franc. The money we saved is only 700000 francs, to be able to buy this house it is necessary to take interest-based loans from banks, we rent this house since 10 years already and we are paying rental fee which the same amount I am going to pay to the bank as interest , if the other family will buy the house, they will ask us to leave because they always wanted to live in the part we rent as it bigger and nicer, and we cannot easy find new house of apartment in the area where we live now. We only want to keep this house and no attention of doing business or earning money in this bank deal.Any prohibition may have certain necessity circumstances that call for relaxation. This applies to riba and too many other prohibitions. Of course, a necessity must always be given its right weight since it is Allah, the Most Knowledgeable, Who is going to screen our truthfulness, not any one else, can you justify this case as necessity and advice us to go ahead and buy the house or say hasbi allah wa nima alwakeel.May Allah guide you to the straight path, and guide you to that which pleases Him

Respected Sirs, Assalamualikum, I would like to know whether a person who is having debt(loan) on his head can perform Umrah or Hajj.

is taking a personal loan with fixed inerest and fixed monthly repayments for the whole period of the loan repayment considered userious(riba)?For example:the loan is for £20000, the rate is 6.4%, monthly repayments £394.72, the number of re payments 59, the total amount payable £23288.48

As-Salamu `alaykum. Is it allowed to take a loan from a bank to buy a business? That's the only way to start a business here in the United States. If I want to take a loan on a business, let's say 900 thousands and I'll have to pay that in 15 years with the interest after the 15 years the total I'll have to pay is, let's say 980 thousands.Now the question is: If I took this loan and pay it back in the 15 years on time, would that be the same as if someone bought the business for 900 thousands and said to me I'll sell it to you for 980 thousands and you can pay me that in 15 years?

salam... Is buying lands and houses, by bank loans wich include intrest, considered halal in all cases? (like someone well off but wishing to expand his fortune for later generations).. and if not, would inheriting be haram as well?barak Allah feekom.

Respected scholars, as-salamu `alaykum. In Australia, most members of the Muslim community are purchasing cars and homes through commercial bank loans and mortgages. This is justified in two ways: First, one has no option in a Western country that does not have Islamic banking - and hence you need to borrow to be able to acquire a car and a home. Second, the prohibited interest refers to excessive interest over and above an acceptable rate (usurious rate). Interest at or below the average is acceptable. Please comment on the above, especially on the notion of interest and riba in Islam.also, please comment on what riba encompasses (interest, excessive profiteering, etc). Jazakum Allahu khayran.

I was wondering if you get a sin if you help a person to a get an interest loan by being a translator. If so, then how can you repent?

Dear scholars, As-Salamu `alaykum. Some teachers ask their students to do research and give the students grades for that. Is it permissible for me to do this research for the student in return for payment? Jazakum Allah khayran.

Dear scholars, As-Salamu `alaykum. I have been quite ignorant for some time in many aspects of Islam. I am in the process of learning how to read the Qur’an, and I have learned how to pray. My question is that during my "ignorant" period I took OSAP to fund my university education. Now I am told by many friends that what I am doing is considered haram. If one cannot afford to pay for university and they take a loan like OSAP, is this considered haram? Jazakum Allah khayran.

I would like to know about Riba or usury in Islam. Allah Almighty says in the Qur’an that “those who devour usury will not stand except as stands one whom the Satan by his touch hath driven to madness.” (Al-Baqarah : 275). The Qur’an describes the grievous sin of dealing in usury by describing those who deal in it using the word ‘devour’, what about a victim of this action? Is it similar to devouring usury or it is not sin? As a Muslim I can't run away from taking a loan from bank, as we know that bank will charge us an interest. Are we sinners or not? And how can we escape from such bad dealing that is prohibited in Islam?

Respected scholars, as-salamu `alaykum.I borrowed some money in dollars from a friend, and I paid him back in Saudi riyals in installments based on the rate of exchange at that time (the time of the loan). What is the ruling on that? Jazakum Allahu Khayran.

Assalamalaikum, My father has three business in Dubai.In running those businesses he took the support of banks...later proper feedback was not put into business as funds were used in different purposes .Resulting in losses and debts.Now we realized that running business through banks support was a mistake and we are worried how to face our debts. Please enlighten this issue in the light of Islam as I don't know whether it is lawful to take support of banks to grow in business?