Can Surplus Child Benefits Be Lent to Others?

Answered by Mawlana Ilyas Patel

Question

Is it haram to take a loan from someone whose income comes from government child benefits?

I borrowed money from a family member whose main income is government child benefits, due to having disabled children. I plan to repay the loan, but I’m concerned whether using this money is haram since it may be the right of his children.

Is it impermissible for him to lend such money, and does that make the loan haram for me to use?

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.

Islamically, child benefits for a family’s welfare are entrusted to the guardian (parent) for the child’s needs, including expenses and medical care.

If the parent has surplus after fulfilling the children’s needs, they may lend it as long as it doesn’t harm the children’s care.

From a fiqh perspective, benefits like child benefits are considered gift transactions (hiba), where complete ownership is transferred to the recipient without liabilities. [Ibn ‘Abidin, Radd al-Muhtar]

I would like you to read the valuable answers below. Insha’Allah, you will gain a deeper understanding of your question.

Related: Am I Sinful for Keeping Child Benefit Payments Instead of Transferring Them to My Ex-Wife?

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I pray this helps with your question.
Wassalam,
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani

Mawlana Ilyas Patel has received a 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.