Is Helping My Parents Pay a Riba-Based Loan Impermissible?

Answered by Shaykh Muhammad Carr

Question 

My parents took out a home loan. My father transferred money to my account, and my mother asked me to withdraw it and accompany her to the bank to pay an installment on the loan.

I am not the borrower, guarantor, or witness to the loan agreement. According to the Shafi’i School, would this be considered impermissible assistance in riba?

Answer

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

Withdrawing your father’s money and handing it over to your mother is not considered impermissible assistance, due to the degree of separateness.  By withdrawing the funds, you are merely returning money that has been entrusted to you.

Since you are not party to the usurious contract in any way, you are not morally responsible. Allah says, ‘And no bearer of burdens will carry the burden of another’. [Quran, 35:18]

This is a unique opportunity for you to advise your parents to free themselves from this usurious loan. With goodwill, tact, and wisdom, advise them to abandon whatever remains of usury. [Quran, 2:278]

Please consult a local shari’a expert who can provide practical guidance and help facilitate a transition from an interest-based loan to a shari’a-compliant alternative

And with Allah alone is our success.

[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani

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.