How Should a Muslim Repent for and Exit an Interest-Based Loan Taken in Ignorance?

Answered by Shaykh Faraz Rabbani

Question

Someone has entered into interest-based loans out of ignorance and now feels unable to exit them quickly. What should they do to repent and manage the situation while fulfilling their responsibilities?

Answer

In the Name of Allah, the Merciful and Compassionate.

I pray you are in good faith and health. May Allah Most High reward your concern and grant you ease in turning toward Him.

The way forward is sincere repentance and a gradual, honest exit from what is impermissible. This is not a single act that would bring harm to you or those who rely on you. Your awareness of the seriousness of riba, and your resolve to leave it, are themselves signs that repentance has begun to take root in your heart.

Allah Most High commands:

“O you who believe, fear Allah, and completely discard any usury still due, if believers you truly be.” [Quran 2:278; Keller, The Quran Beheld]

This verse makes clear the obligation. The next verse opens the door of return and hope.

“And if you repent and desist, you may keep your original wealth, neither wronging nor being wronged.” [Quran 2:279; Keller, The Quran Beheld]

The Prophet Muhammad (Allah bless him and give him peace) said: “Allah has cursed the one who consumes riba, the one who pays it, the one who writes it, and the two witnesses to it; they are all equal.” [Muslim]

This hadith is indeed grave, yet repentance lifts what repentance can lift. Allah’s mercy is vast for those who turn to Him sincerely.

Repentance and Exit Plan

Repentance from riba has three conditions: to leave the sin to the extent possible now, to feel sincere remorse, and to resolve never to return to it. There is no monetary expiation for riba that has already been paid. What is required is sincere repentance and a practical plan to put it behind you.

Remember:

If leaving immediately would bring harm to you or your family, then take the next responsible step that is within your means. When a halal alternative becomes available, seek to refinance. Work to pay down the principal as much as you are able. Do not take on any new riba-based contracts from today. Write down your plan to exit, and follow it with resolve and trust in Allah. Please find related answers in the SeekersGuidance Answers.

Three Steps Forward

Turn to Allah in sincere repentance now. Do not wait for the contract to end. Write out your plan to exit, and act on it as your means allow.

And be certain of the Mercy of Allah and the Prophet’s words: “Every son of Adam commits sin, and the best of those who commit sin are those who repent.” [Tirmidhi]

Ask Allah Most High for an opening, for the one who turns to Him finds Him near. May Allah clear your path of every burden, replace what was lost with blessing, and grant you provision from where you do not expect.

And Allah knows best.

[Shaykh] Faraz Rabbani

Related

• How Can I Repent If a Transaction of Mine Involved Interest?
• How Should I Exit an Interest-Based Car Loan?
• What Can We Do to Get Rid of an Interest-Based Loan on a House?
• Is There Expiation for Paying Interest on a Bank Loan That We’ve Paid Off?

Shaykh Faraz Rabbani is a recognized specialist scholar in the Islamic sciences, having studied under leading scholars from around the world. He is the Founder and Executive Director of SeekersGuidance.

Shaykh Faraz stands as a distinguished figure in Islamic scholarship. His journey in seeking knowledge is marked by dedication and depth. He spent ten years studying under some of the most revered scholars of our times. His initial studies took place in Damascus. He then continued in Amman, Jordan.

In Damascus, he was privileged to learn from the late Shaykh Adib al-Kallas. Shaykh Adib al-Kallas was renowned as the foremost theologian of his time. Shaykh Faraz also studied under Shaykh Hassan al-Hindi in Damascus. Shaykh Hassan is recognized as one of the leading Hanafi jurists of our era.

Upon completing his studies, Shaykh Faraz returned to Canada in 2007. His return marked a new chapter in his service to the community. He founded SeekersGuidance. The organization reflects his commitment to spreading Islamic knowledge. It aims to be reliable, relevant, inspiring, and accessible. This mission addresses both online and on-the-ground needs.

Shaykh Faraz is also an accomplished author. His notable work includes “Absolute Essentials of Islam: Faith, Prayer, and the Path of Salvation According to the Hanafi School,” published by White Thread Press in 2004, which is a significant contribution to Islamic literature.

His influence extends beyond his immediate community. Since 2011, Shaykh Faraz has been recognized as one of the 500 most influential Muslims. This recognition comes from the Royal Islamic Strategic Studies Center. It underscores his impact on the global Islamic discourse.

Shaykh Faraz Rabbani’s life and work embody a profound commitment to Islamic scholarship. His teachings continue to enlighten and guide seekers of knowledge worldwide.