Can I take a loan that gives a choice between paying the principal within a defined period or the payment of an increment after the period?

Q: Can I take a loan that gives a choice between paying the principal within a defined period or the payment of an increment after the period? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: In principle, any loan that gives a choice between paying just the principal within a defined period or the payment […]

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Am I responsible if my wife engages in interest-based activities?

Q: Am I responsible if my wife engages in interest-based activities? I understand that riba is a very serious and major sin. I have been Muslim for four years and am looking to marry a sister insha’Allah. But I just found out recently that she is paying for an interest-only mortgage for her family’s home […]

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Is paying back a student loan a requirement before going on Hajj?

Q: My husband and I have applied to go on hajj this year inshAllah. I was reminded by my husband however that I have not paid back my student loan of £9000, which i took out before I got married, to help pay fees and expenses of 3 years of a degree in Medicine. I say […]

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Can I sell property to a buyer with a conventional mortgage?

Q: Can I sell property to a buyer with a conventional mortgage? We are in the business of buying and selling properties in the U.K. and wish to ensure that our business is ethical, halâl and permissible. We list below the 3 options of conducting our business on which we would be pleased if you […]

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Can someone stuck in a ribā-based loan give voluntary charity, or do they need to pay off the ribā-based loan first?

 Q: Can someone stuck in a riba-based loan give voluntary charity, or do they need to pay off the riba-based loan first, given that is a duty, and thereafter resume with giving voluntary charitable donations? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: One who has taken a haram loan or a conventional mortgage should […]

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Is the government contribution in the help to buy scheme permissible?

Q: Is it permissible to have a savings account for a help to buy scheme where, if u have about £12000 the government will give you £3000?   الجواب حامدًا و مصليًا و منه الصدق و الصواب A: The contribution paid by the government in an Help to Buy: ISA is actually a gift and not […]

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Are the products offered by Al Rayan bank Shari’ah compliant?

Q: Are the Home Purchase and Buy to let products offered by Al Rayan Shari’ah compliant? A: Al Qalam Shariah Panel have not audited Al Rayan bank’s products hence we are not able to comment on their shariah compliance. Each of the banks that offer Shari’ah compliant home purchase plans have a panel of external […]

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Is it permissible to take a business loan which requires payment of an insurance premium?

Hawkesbay Investment Corporation Limited The business is in conformity with standards and in line with normal  corporate ethics. Based on the loans agreement   drafted by our client and we guarantee that our client will only enter into a legitimate  business transaction as proposed with the funds. Legal & General Insurance  company  hereby  guarantee the safety […]

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Can interest money be used for paying Council Tax and car insurance?

Q: Can interest money received be used for paying Council Tax and car insurance? Additionally should interest money be disposed with non Islamic charities? A: Interest money cannot be used to pay council tax or car insurance. It should instead be given to the poor or utilised in public welfare projects without any intention of […]

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Is it permissible to have a fixed return in a profit sharing agreement?

Q: Is it permissible to have a fixed return in the following profit sharing agreement?  A lender agrees to provide an interest free loan to a businessman.  Separately, the businessman will in the near future be completing a trade and selling certain goods to his customer.  The lender wants to raise a contract to stipulate that the businessman will pay back the […]

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