In the Name of Allāh, the Most Merciful, the Most Compassionate
The Ruling of Facilitating Interest Based 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. Below we mention a few:
- 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]
Allāh Taʿālā has also prohibited assisting, facilitating, encouraging, and promoting the sin. He Taʿālā said: “And do not assist in sin and transgression.” Then He Taʿālā immediately warns: “And fear Allāh; indeed, Allāh is severe in penalty.” {Al-Māʾidah: 2}
As mentioned above, the Prophet ﷺ listed some of those who assist in an interest contract as a way of an example and then said they are all equal in sin. Ḥazrat Muftī Bemat ṣāḥib رحمه الله said: “It is ḥarām to help or be a helper in any way in an interest transaction.” (Pg.86)
When asked about the permissibility of simply sending an internet link of an interest-based financier to a customer, Ḥazrat Muftī Radhaul Haqq of Darul Uloom Zakariya, South Africa, Ḥazrat Muftī Shabbir Ahmed, Mufti Muhammad Tahir of the UK حفظهم الله and others all said that this is not permissible.
Therefore, setting up a tent on one’s property for a financier to come and give interest-based loans to potential customers, advising customers to take interest-based loans, directing them to a contact in the bank, or calling a contact in the bank to organise an interest-based loan for a customer will all come under assisting in a major sin and/or encouraging others to commit one. Therefore, this is to be avoided.
On the other hand, when a customer comes to us to buy a car, an alternative ḥalāl option would be to delegate them to reputable Islamic Finance options. The car dealer can also sell on credit terms with a fixed agreed upon price and final date. In this case one will be rewarded for helping a brother. Note, this is not conventional ‘Hire Purchase’ or ‘Leasing’. As a final option, one can write a generic proforma invoice for customers without addressing the bank or credit union and without advising the person to take it to such institutions.
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 08 Rabīʿ Al-Thānī 1447 30th September 2025 |
Reviewed and concurred by:
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