Can I Give Interest to a Relative in Need?
Answered by Shaykh Muhammad Carr
Question
Can I give bank interest to help a relative in a financial crisis pay off their riba-based loan, given that we must dispose of interest money and lack Islamic banks here? Please explain, especially concerning the zakat rules on such loans.
ِAnswer
In the Name of Allah, the Most Merciful and Compassionate.
I pray you are in good faith and health. Thank you for your question.
There is no zakat on the monies in question. Furthermore, you may assist your relative entitled by his need to receive charity by giving them the bank interest while keeping the following in mind:
1. In Shari‘a, riba is prohibited. [Quran, 2:278-279] Muslims should avoid all interest-based transactions, including receiving and giving interest.
2. It is haram to use riba for personal benefit, and the correct Islamic response is to dispose of it as you indicated.
3. While you may have earned interest, your relative receives it as charity. When the quality of the wealth changes, the ruling changes as well. [Nawawi, Sharh Sahih Muslim]
4. Your relative must have made tawba (repented); otherwise, your assistance amounts to assisting with sin and transgression.
Interest-Based Loans
For clarity on interest-based loans, please click here
And with Allah alone is our success.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Muhammad Abu Bakr Badhib
Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door for students. As an imam, he has the unique opportunity to serve his community in daily life.
In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
