Penalty for missed payments

Q: I’m renting a commercial shop and the contract has a clause regarding missed payments and interest etc… Can I say to ‘seller/landlord’ I will pay 10% on the rental amount if the rent is missed by 7 days and 20% if it’s missed by 14days? Please advise.   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب […]

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Can we use the unlawful earnings to pay off a mortgage?

Q: I have £1000 profit worth of shares in a bank (they were acquired through the banks company share save scheme which i’m an employee in the IT department.) I also have a mortgage with the same bank. Is it permissible for me to use the £1000 profit from the shares to pay towards reduction in mortgage. Note […]

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Can we take out an individual voluntary arrangement (IVA) for paying off debts?

Q: I have a huge amount of debts and I am considering taking out an IVA plan even though I can make the payments to the companies, Is it permissible for me to take an IVA  which means I will not pay back all the money I owe to the creditors which means up to 60% […]

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Profit made out of renting a property bought through unlawful mortgage

Q:  A  landlord, are currently renting out a property which is currently on an unlawful mortgage – is the income/profit made from this property therefore unlawful too? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A:  Whilst it is unlawful to take out an interest-based mortgage the mortgage funds themselves are not unlawful. It is the […]

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Can a loan be transferred to a 3rd party?

Q: I have taken a loan from  my sister and then I have lent the money to a 3rd party  on the condition that, they will repay back the loan to my sister directly. Am I still responsible for the loan? If yes then how do I include it in my Will? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: You remain responsible for […]

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Is it permissible to take an offset mortgage?

Q: Many conventional banks have products called ‘Offset’ Mortgages. These are mortgages whereby:  If i have a mortgage of 50K and savings of 50K the savings offsets the interest on the remaining mortgage value. So in the above case 50K mortgage, 50K savings means zero interest.  Hence, is it permitted to take a conventional mortgage whereby […]

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Is it acceptable to take a shari’ah compliant loan arranged by the Financing Sharia Enterprise?

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 […]

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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 […]

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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 […]

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Can I pay Zakat on my mothers behalf even though I have a student loan to repay? Will it be considered a Sadaqah for me?

Q: Can I pay Zakat on my mothers behalf even though I have a student loan to repay? Will it be considered a Sadaqah? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: You can pay your mother’s Zakat on her behalf with her permission. This will be considered a Sadaqah for you.  Repayment of debt is a […]

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My father said that if he gives me money as a gift, I must buy a house. Is this a type of riba statement?

Q: My father said that if he gives me money as a gift, I must buy a house.  Is this a type of riba statement?    الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: If your father gives you some money and stipulates that you must purchase a house therewith, irrespective as to whether the […]

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Is paying off a person’s debt permissible if that debt was taken out for something deemed impermissible in Sharī‘ah?

Q: Is paying off a person’s debt permissible if that debt was contracted for something deemed impermissible in Sharī‘ah?   الجواب حامدا ومصليا ومنه الصدق والصواب   A: In principle, if you gift or lend someone some money that person is free to utilise that money in whichever way he/she feels even if you have […]

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