Q: The government backed Start Up Loans Company is offering a shariah compliant loan to customers wanting a halal alternative. The shariah compliant loan is being arranged by the Financing Sharia Enterprise and from their website it appears they are using the Mudaraba system. Is this acceptable according to shari’ah? الجواب حامدا ومصليا ومسلما ومنه […]
Read more...Category: Mortgages and Loans
Is the NewShare scheme shariah compliant?
Q: My local council offers this scheme, called Newham NewShare . From the website it states: “An equity loan from us will make up the difference. The type of property you want to buy will decide what percentage of the cost you will have to fund from a mortgage and deposit. Equity loan fee When […]
Read more...Is it permissible to take out a business loan or commercial loan?
Q: If looking to buy and take over a business, is it permissible to take out a business loan or commercial loan? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: It is not permissible to take out a conventional business loan when looking to buy and take over a business. A an interest bearing loan is […]
Read more...Is a husband obliged to pay back the debt of his wife?
Q: Is my wife’s student loan something that I as the husband should be considering repaying back on her behalf, on the basis that she may not go back into employment? Does the loan become the husband’s responsibility? What if the husband is currently in the process of clearing his own personal debts? الجواب […]
Read more...Would one be held liable Islamically, it they were to die before paying off thier student loan?
Q: When one dies still owing some student loan, it is written off. What is the Islamic perspective on this? Will we still be held accountable for this in front of Allah? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: As the loan is written off the borrower will not be held accountable for not […]
Read more...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 […]
Read more...Is it permissible to remind a friend of a loan repayment they owe me?
Q: Is it permissible to remind a friend of a loan repayment they owe me? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: It is permissible for you to ask for the amount you loaned to your friend.
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...Home Purchase Plan vs Conventional mortgage? Example
Q: My question is in regards to Home Purchase Plan via Conventional mortgage. I have had a HPP from an Islamic Bank (Ar Rayyan) now for 4 years. I have noticed during these 4 years that the rent/purchase ratio of the monthly statements fluctuate drastically from month to month and as an average – every […]
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