Can Accrued Interest from RRSP Be Used for Non-Muslim Relative’s Debt Payment?

Answered by Mawlana Ilyas Patel

Question

Can accrued interest from an employer-funded RRSP be used to pay off a non-Muslim relative’s credit card debt?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

I pray you are in good faith and health.

Islamically, interest earned is not considered one’s property; it is classified as unlawful money. The general rule regarding unlawful money is that it must be disposed of without any expectation of reward. In your situation, it is permissible to give this money to a non-Muslim who has credit card debt. See the links below.

General Rule of Unlawful Funds

The general rule for disposing of unlawful funds is as follows:

• If the rightful owner is known, the funds must be returned to them.
• If the rightful owner is not known, or if they refuse to accept the funds, they must be disposed of in one of the following ways: a) The funds should be donated to a charitable cause that benefits the public, such as public hospitals, schools, or similar institutions; b) Alternatively, the funds may be given as charity to an individual in need and entitled to assistance. [al-Fatawa al-Hindiyya, ‘Usmani, Fiqh al-Buyu‘, Taha Karaan, MJC]

Related

• Giving Charity to Non-Muslims When There are Poor Muslims
• How Do I Get Rid Of Haram Money?
• Disposal of Riba
• Getting Rid of Haram Money Archives

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I pray this helps with your question.
Wassalam,
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Abdul-Rahim Reasat

Mawlana Ilyas Patel has received traditional education in various countries. He started his schooling in the UK and completed his hifz of the Quran in India. After that, he joined an Islamic seminary in the UK, where he studied secular and Aalimiyya sciences. Later, he traveled to Karachi, Pakistan, and other Middle Eastern countries to further his education. Mawlana has served as an Imam in the Republic of Ireland for several years and taught the Quran and other Islamic sciences to both children and adults. He also worked as a teacher and librarian at a local Islamic seminary in the UK for 12 years. Presently, he lives in the UK with his wife and is interested in books and gardening.