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Are Items Bought with Impermissible Loans Haram?

Answered by Shaykh Jamir Meah

Question: Assalamu alaykum

If one borrowed money off a family member for a house and the family member’s money was from a haraam source, but has now been paid off in full with halal money, would this mean when selling the house, the money would be haraam?

Secondly if someone took a sinful interest based mortgage and paid it off, would this also mean the house is haraam or the money is when sold?

Answer: Wa’alaykum assalam. Thank you for your questions.

1. If the lender owned a mix of money from halal sources and haram sources, then it is permitted to take money from them, although somewhat disliked. If you are certain that the actual money given to you was from haram sources alone, then it would have been prohibited for you to have taken that money in the first place.

However, since you have paid the loan back with your halal money, the property in of itself is not haram, and therefore the money made from its sale would be halal.

2. As above, the sin is in the initial agreement and continues until the debt is paid off. The house in of itself is permissible as is the money from its sale.

Lastly, it is advisable to pray two cycles of Salat al Tawba (the Prayer of Repentance) and resolve not to enter into such transactions in the future.

May Allah grant you every good in this life and the next, insha’Allah.

Warmest salams,
[Shaykh] Jamir Meah

Shaykh Jamir Meah grew up in Hampstead, London. In 2007, he traveled to Tarim, Yemen, where he spent nine years studying the Islamic sciences on a one-to-one basis under the foremost scholars of the Ribaat, Tarim, with a main specialization and focus on Shafi’i fiqh. In early 2016, he moved to Amman, Jordan, where he continues advanced studies in a range of Islamic sciences, as well as teaching. Jamir is a qualified homeopath.

Are My Prayers Invalid While I Am Paying Interests?

Answered by Shaykh Abdurragmaan Khan

Question: Assalam alaykum,

I have student loans that are accruing interest. I have not been able to pay them. Do I have to redo every single prayers that I have done during these loans?

Answer: Wa alaykum al-Salam

If the prayer was offered correctly, with all conditions and requirements fulfilled, then it is considered valid. The fact that you may or may not have a loan accruing interest does in no way effect the status of your prayer.

Regarding your interest loan, you should try your utmost to repay it as soon as possible. If you are not by the financial means to pay the loan, you may consider approaching a Zakah organization and request assistance from them in this regard.

May Allah increase you in faith and closeness to Him.

And Allah knows best
Wassalam
[Shaykh] Abdurragmaan Khan

Shaykh Abdurragmaan
received ijazah ’ammah from various luminaries, including but not restricted to: Habib Umar ibn Hafiz—a personality who affected him greatly and who has changed his relationship with Allah, Maulana Yusuf Karaan—the former Mufti of Cape Town; Habib ‘Ali al-Mashhur—the current Mufti of Tarim; Habib ‘Umar al-Jaylani—the Shafi‘i Mufti of Makkah; Sayyid Ahmad bin Abi Bakr al-Hibshi; Habib Kadhim as-Saqqaf; Shaykh Mahmud Sa’id Mamduh; Maulana Abdul Hafiz al-Makki; Shaykh Ala ad-Din al-Afghani; Maulana Fazlur Rahman al-Azami and Shaykh Yahya al-Gawthani amongst others.

Should I Start to Repay a Student Loan I Am Not Currently Required To?

Answered by Shaykh Faraz Rabbani

Question: Assalam alaykum,

When I was studying, I took a loan out to cover the cost of my tuition fees. However, I am currently earning below the Student Loan Company’s repayment threshold.

Is it mandatory for me to start paying the debt though I’m not required to payback at this moment by this company?

Answer: In the Name of Allah, the Merciful and Compassionate

Walaikum assalam wa rahmatullah

I pray this finds you in the best of health and spirits.

The key concerns would be:
(1) if your debt is accumulating interest (riba), then you have to expedite repayment, within reasonable ability;
(2) you shouldn’t unduly avoid repayment;
(3) it is permissible to delay repayment when below their threshold–and recommended to take the means of hastening repayment, and acquiring the financial capacity to repay.

Please see: Debt: How It Destroys Lives, How You Can Fight It

And Allah is the giver of success and facilitation.

Faraz Rabbani

Is It Permissible to Accept a Severance Payment When One’s Employment is Terminated?

Answered by Shaykh Taha Abdul-Basser

Question: Assalamo Alaikum,

I have worked in various organisations where people have been granted different types of lump sum payments. The first is a severance payment for termination of their employment contract. The second is a redundancy payment that pays them a certain amount based on their length of service with the company if the company decides it no longer requires the services of an employee. A third type is a grievance payment that companies often make in order to ensure that individuals do not raise legal cases against them in order to claim greater compensation for grievance. Please would you be able to shed some light on the permissibility of these payments?

Answer:

Bismillahi r-rahmani -r-rahim Al-hamdu li-llahi rabbi l-`alamin wa s-salatu wa s-salamu `ala sayyidina Muhammad wa-`ala alihi wa-sahbihi ajma`in wa-man tabi`ahum bi-ihsan ila yawmi d-din `amma ba`d

1. It is permissible for an employee who has been terminated to accept a severance payment since it is, in essence, a unilateral bonus payment from the employer that is not stipulated in the employment contract (or implicitly established by custom) and is therefore not usury (riba). Rather it is consistent with the Prophetic practice of compensating one’s creditor with better (more) than what one actually owes. (Zad 113; Rawd 2:28; Kashshaf al-Qina` 5:1547)

Among other indicants, our legists (fuqaha’) cite as an indicant of the permissibility of unilateral overpayment the hadith reported by Muslim on the authority of Abu Rafi` (radiya llahu `anhu): “The Messenger (salla llahu `alyhi wa s-sallam) borrowed a young camel (from someone). Then some camels (given in) charity arrived. He (salla llahu `alyhi wa s-sallam) told Abu Rafi` to repay the man his young camel. (Abu Rafi`) went to the camels and said ‘I can not find anything other than a superior, [older] camel.’ He (salla llahu `alyhi wa s-sallam) said ‘Give it to him, for indeed the best of people are those who are best in repayment'” (Muslim, k. al-musaqah wa l-muzara`ah 22/118, 1600).

Imam al-Nawawi comments on this hadith:

In the hadith is (an indication) that it is commendable (mustahabb) for a person who owes a debt, whether (arising) from a loan or some other (type of transaction), to repay better than that which he owes. This is the prophetic practice (sunnah) and (an expression of) praiseworthy personality traits (makarim al-akhlaq). (Doing so) is not a loan that entails a benefit [fpr the lender] (qard jarr manfa`(an))–which is prohibited–because what is prohibited is [a surplus] that is *stipulated* [our empahsis] in the loan contract. Our position (madhhab) [i..e the Shafi`i position] is that it is commendable to pay more than what one owes; and that it is permitted for the lender to accept it, whether the the debtor increases the quality or the number, by [for example] repaying eleven when [the lender] gave him ten as loan. The position of Malik (on the other hand) is that an increase in number is prohibited. The proof [for the position] of our fellow [Shafi`is] is his (salla llahu `alyhi wa s-sallam) statement <>

2. It is permissible to accept a redundancy payments, since such a payment is also a non-stipulated, unilateral bonus payment (see no 1 above).

3. It is permissible to accept grievance payments since they are either a) non-stipulated, unilateral bonus payment (see no 1 above) or a payment meant to cover in full or in part the compensation that was due to the employee as per the contract and prevailing custom.

Wa-llahu a`lam.

afqar al-ibad ila rahmati rabbihi ta`ala
taha bin hasan abdul-basser
26 Jumada II 1434 = May 6 2013

References

Sahih Muslim

al-Nawawi, Sharh Sahih Muslim/

al-Buhuti, Mansur b. Yunus/al-Hijawi, Sharaf al-Din. Kashshaf al-Qina` `an Matn al-Iqna` [=Kashshaf]. Ed. Ibrahim Ahmad Abd al-Hamid. (Dar `Alam al-Kutub: Riyad) 1423/2003

al-Buhuti, Mansur b. Yunus/al-Hijawi, Sharaf al-Din. al-Rawd al-Murbi [=Rawd].

al-Hijawi, Sharaf al-Din/al-Maqdisi, Muwaffaq al-Din Ibn qudamah . Zad al-Mustaqni` Mukhtasar al-Muqni`.