Fatwa: # 46071
Category: Business Matters
Country:
Date: 16th September 2020

Title

Can I take an interest-based loan to pay off the interest on my credit cards?

Question

Assalamualaykum,

 

i understnad interst is haramm. i am currently in approxiamate £30,000 debts spread of several credit cards. when i took these cards out thy were on the interest free promotional offer. the offer has now expired and i have still not cleared the debt so interest is now being charged. as the debt is spead of aprroximately 7 cards i am paying the minimum payment on each card whcih combined for all cads cmes to a total of about £700. i am being unable to come out of this as i am cant pay much more than the minimum amount requested. I dont have anywhere that i could borrow the money interest free to consolidate the payment and clear it. i dont have frinds or fmily who are bale to borrow this amont of money and then i can pay them back. i want to understand if it is eprmissble to borrow the money as a personal loan which charges interest so i can consolodate my payments and cleat the debt.

 

jazakallah 

Answer

Wa Alaykumus Salaam Wa Rahmatullahi Wa Barakaatuh

In the Name of Allah, the Most Gracious, the Most Merciful.

Brother in Islam,

We make Dua that Allah grant you the courage to overcome the challenges related to the interest-bearing debt which has been incurred.

Alhamdulillah, you are aware that interest is Haraam.

Brother, if you are struggling to service the interest related loans with seven cards, how will another interest-bearing loan resolve your issue?

Interest is a temporary relief which leads to permanent grief. You have already witnessed and experienced the burden of paying interest related loans.

Allah Ta’ala has expounded on the worthlessness of interest in the following verse:

يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ [البقرة: 276]

Translation: Allah Ta’ala destroys interest and causes charity to grow [1:276]

Nabi says regarding interest:

الرِّبَا وَإِنْ كَثُرَ، فَإِنَّ عَاقِبَتَهُ تَصِيرُ إِلَى قُلٍّ

Translation: Verily interest, regardless of the amount, will definitely incur one eventual loss.[1]

Furthermore, Allah Ta’ala sounds a severe warning in the Quraan to those who do not abstain from dealing in interest:

فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ [البقرة: 279]

Translation: If you do not (abstain from interest), then be warned of the declaration of war with Allah Ta’ala and his Rasul ﷺ. [1:279]

 

Nabi ﷺ has also cursed the person who deals in Riba:

لَعَنَ رَسُولُ اللهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ آكِلَ الرِّبَا، وَمُوكِلَهُ، وَشَاهِدَيْهِ، وَكَاتِبَهُ

Translation: Nabi ﷺ has cursed the one who consumes interest or deals in it or witnesses an interest bearing transaction or records it.[2]

You should explore Shariah compliant alternatives to conventional, interest-based financing to pay off your debts. This will save you from the perpetuity of interest, which harms both your Dunya and Akhirah.  Also, make sincere Tawbah and resolve never to enter interest-bearing transactions in the future.

And Allah Ta’ala Knows best

Ebrahim Ibn Ahmed Dadan

Student Darul Iftaa
Pietermaritzburg South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

 

 


[1]

مسند أحمد ط الرسالة (6/ 297)

 - حَدَّثَنَا حَجَّاجٌ، حَدَّثَنَا شَرِيكٌ، عَنِ الرُّكَيْنِ بْنِ الرَّبِيعِ، عَنْ أَبِيهِ، عَنِ ابْنِ مَسْعُودٍ، أَنَّ النَّبِيَّ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ، قَالَ: " الرِّبَا وَإِنْ كَثُرَ، فَإِنَّ عَاقِبَتَهُ تَصِيرُ إِلَى قُلٍّ "

حديث صحيح، قوله: "تصير إلى قل": قال ابن الأثير: القل، بالضم: القِلة، كالذل والذلة، أي إنه وإن كان زيادةً في المال عاجلاً، فإنه يؤول إلى نقص، كقوله تعالى: (يمحق الله الربا ويرْبي الصدقات) [البقرة: 276]

[2]

سنن الترمذي ت بشار (2/ 503)

لَعَنَ رَسُولُ اللهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ آكِلَ الرِّبَا، وَمُوكِلَهُ، وَشَاهِدَيْهِ، وَكَاتِبَهُ

 

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