In the Name of Allāh, the Most Merciful, the Most Compassionate
Taking and Giving Interest Bearing Loans
Dealing in interest is considered one of the worst major sins. In his book ‘Dealing in Interest’, Ḥazrat Muftī Ahmad Bemat ṣāḥib رحمه الله mentioned eight (8) verses of the Qurʾān Majīd and thirty-nine (39) ḥadīths which speak about the prohibition, sin, harms and punishments for dealing in interest. A few are listed below:
- Allāh wages war against those who deal in interest. {Al-Baqarah: 279}
- Allāh destroys interest and removes all barakah. {Al-Baqarah: 276}
- The one who deals in interest is like the one who an evil jinni afflicts. {Al-Baqarah: 275}
- The Prophet ﷺ cursed the consumer of interest, the giver of interest, the one who records the transaction, and the one who witnesses it. He ﷺ commented that all are equal in sin. [Muslim #1598, Bukhārī #1980]
- The Prophet ﷺ said that the sin of interest has 70 stages. The lowest is to commit zinā with one’s mother. [Ibn Mājah: #2274]
- The locality in which interest and adultery become common; understand that these people have taken the punishment of Allāh upon themselves. [Mustadrak Ḥākim #2261]
Therefore, the ʿulamā (scholars) unanimously agree that it is ḥarām (prohibited) to take or give interest-bearing loans. There is no scenario where it will be permissible to consume interest. If one earns interest, his wealth will be tainted with ḥarām income.
In the ḥadīth the following has been said about the one who acquires ḥarām earnings:
- His charity will not be accepted. (Fuqahāʾ state that it is kufr to give ḥarām in charity with the intention of rewards.)
- He will be deprived of barakah in his expenditures.
- Whatever he leaves behind after death will be his provisions in the Hell Fire.
- He will not enter Jannah. [Musnad Aḥmad #3672, #14441]
It will be binding on him to discharge of this ḥarām amount by giving it to the poor, Muslim or Non-Muslim, without the intention of gaining rewards through charity. Rather his intention should be, O Allāh forgive me and protect me from the punishments and ill consequences of this ḥarām wealth.
Paying for services on behalf of one’s customers like the construction bill, carpenter bill, mechanic bill, utility bills, phone bills etc. and then charging them extra on the cards is considered lending them money on interest. This is totally prohibited and the extra earnings is ḥarām and filthy.
As for taking interest-based loans, then this is also prohibited and ḥarām. The Prophet ﷺ said, “The one who takes and gives interest are equal.” [Muslim]
Therefore, it is totally ḥarām to take interest-based loans for anything, including but not limited to:
- personal cars,
- personal houses,
- to start a business,
- to grow a business or
- for recreational purposes.
Note: The blanket claim that it is permissible to take an interest-based loan for one’s first house is baseless.
May Allāh allow us to stay within the boundaries of the Sharīʿah in earning a living and may He protect our wealth from being tainted with the harms of interest-based dealings. ʾĀmīn.
And Allāh Taʿālā knows best
| Ibn Suleman
Dārul Iftā wal Irshād, Sirājul ʿUlūm Institute 13 Jumādul ʾĀkhirah 1447 04 December 2025 |
Reviewed and concurred by:
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