I would like a comprehensive answer in regards to loans which incorporate Interest. I ask you to consider a fatwa given by the scholar Yusuf Al-Qaradawi.

In this fatwa, he states that it is permissable for a Muslim in a Western country to buy one house for living purposes using a bank loan. As this matter has caused us much confusion and heartache, I ask you to give full consideration to his reasons and give me full answers to why you might think otherwise.

In principle, to deal in any interest bearing transactions, loan, etc. is strictly prohibited as also expressedly mentioned in the Qur’aan.

However, Shari’ah takes into consideration different situation. The Fuqahaa have mentioned that it is permissible for a Muhtaaj (person in dire need) to take a loan on interest. (al-Ashbaah). Nevertheless, it is not permissible for any individual to determine himself being a Muhtaaj person. That should be determined by a Allah-Fearing and reliable Mufti. Only having assessed the condition of an individual claiming to be a Muhtaaj, should the Mufti issue a decree. A decree based on circumstances of any individual cannot be regarded as a blanket rule.

and Allah Ta'ala Knows Best
Mufti Ebrahim Desai

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