Happy,Muslim,Woman,With,Dollars,In,Hand.,Isolated,On,White

Can I Take This ‘Interest-Free’ Loan?


Hanafi Fiqh

Answered by Shaykh Abdul-Rahim Reasat

Question

Assalamu ‘alaykum.

I wanted to ask if I can borrow money from a website provider. They are offering me £2400. The offer mentions that it is interest-free. However, they will take £2700 by cutting 5% of each sale I make. If I don’t sell, they won’t take it, I believe.  

They take a percentage from each sale until it reaches £2700. 

They say this is a fee and not interest. Is it permissible to take this loan? 

Answer

Wa ‘alaykum assalam wa rahmatullah wa barakatuh.

I pray you are well.

No, it would not be permissible to take this loan. They may not class it as interest, but it comes under the definition of riba. They would be lending you an amount, taking back that amount, and then taking extra. 

The amount paid back is in exchange for what would be borrowed. The extra amount would not be in exchange for anything besides the fact they gave you the loan. This is Riba. There is also a fiqhi principle that states, “Every loan that brings in some benefit is Riba.“ (Maydani, al Lubab)

Do yourself a favor and stay away from it. Ask Allah to facilitate the money from a halal source, pray a salat al haja, and then ask a family member or a friend. Allah will ease what is good for you. It’s better to stay away from this as much a possible.

May Allah grant you the best of both worlds.

[Shaykh] Abdul-Rahim

 

Checked and Approved by Shaykh Faraz Rabbani

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History, he moved to Damascus in 2007, where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital. He was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.