Should I Include Loans When I Calculate My Zakat?

Answered by Ustadh Tabraze Azam Question: Assalam alaykum I needed money, and one of my relatives helped me out. He is happy to get the money back (if I can ever repay), and he is happy if I don’t repay. Is zakat calculated on this? It is a confusing matter as I’m not financially well […]

Day 19: Give A Good Loan – 30 Deeds 30 Days

Day 19: Give A Good Loan Scholars say that giving a loan can have greater reward than charity, because it creates a good relationship where one person empowers another, and gives them a sense of responsibility and a preservation of dignity. There is a time for charity, and a time for lending. This Ramadan, if […]

Day 23 in a Nutshell – Why Loans Are Better Than Sadaqa, #YourRamadanHub Xtra

If you missed the livestream of the extraordinary short talks by Shaykh Faraz Rabbani, you can listen to them in full on the SeekersHub podcast on iTunes. Please subscribe for automatic updates. If you could take a moment to rate the podcast and leave a review, we’d really appreciate it! In the meantime, we present you with #YourRamadanHub […]

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

The good folks at Rizqwise have a very worthy multi-part series on debt that you should really listen to. If you haven’t got the time, this concluding episode is not to be missed. Rizqwise speak to Rehan Huda, a prominent investment banker and leading authority in Islamic Finance, about some of the key lessons we […]

Is an Indexed Loan Akin to Unlawful Usury?

Answered by Ustadh Tabraze Azam Question: Assalamu alaykum wa rahmatullahi wa barakatuh The other day I was reading about an interest-free loan I was considering on taking. However, they mentioned that the debt would be indexed each year to reflect changes in the Consumer Price Index so that the debt maintains its real value. Thus, […]

Can I Offer an Incentive When I’m Seeking a Loan?

Answered by Shaykh Faraz A. Khan Question: What is a halal form of offering incentive to a loaner when requesting a loan. I am a small business owner seeking to purchase a building/shop and I am in need of start up money. Everyone is interested in investing in exchange for a continuous percentage of profit. […]

Should I Give Out a Loan to a Close Relative if I’m Already in Debt?

Answered by Shaykh Faraz A. Khan Question: We recently received a request from a close relative to lend him substantial loan which he promised to pay back in a few months. The problem is, we already have debt of over $10,000! I know this person’s need is genuine and I would feel guilty about refusing […]

Loans Entailing More Reward than Charity and the Validity of an Estate’s Executor Being a Beneficiary in the Will

Answered by Shaykh Faraz A. Khan Question: I have questions about 2 statements made by an imam, which I suspect to be incorrect. First, he said there is an authentic hadith wherein the prophet said that to give a loan is 17 times more rewardable than to give charity of the same amount. Secondly, on […]