Fatwa ID: 08377

Answered by: Maulana Abdurrahman Mohammad

Question:

I wanted to ask a question regarding online loan apps and how they are taking a lot of interest. And what should a person can do if don’t want to pay the interest and also keeping the Islamic perspective. Is it okay not giving back the loan? These are based in Pakistan and many people are been targeted because of it they are committing suicide.

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

Allah SWT says in the Quran

O believers! Fear Allah, and give up outstanding interest if you are ˹true˺ believers.

If you do not, then beware of a war with Allah and His Messenger! But if you repent, you may retain your principal—neither inflicting nor suffering harm.

Based on the verses of the Quran and Ahadith, it is Haram to give and take interest. One should consider Islamic financing and take non-interest bearing loans, even if it means paying more long term. If someone had taken interest bearing loans in the past, Islamically they are required to return the capital amount (loan amount) and not the interest amount. Not returning the loan is oppression and usurping the rights of others. As for the interest amount, if not paying interest results in legal consequences and further penalties, it would be best to follow the Usool (يختار أهون الشرّين) and choose the lesser of two evils. If you are planning to take a loan, you must choose an Islamic financing option and stay far away from interest. Ask local scholars and community members about available options and choose the option that best aligns with the Shariah.

References:

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ ٱتَّقُوا۟ ٱللَّهَ وَذَرُوا۟ مَا بَقِىَ مِنَ ٱلرِّبَوٰٓا۟ إِن كُنتُم مُّؤْمِنِينَ ٢٧٨ فَإِن لَّمْ تَفْعَلُوا۟ فَأْذَنُوا۟ بِحَرْبٍۢ مِّنَ ٱللَّهِ وَرَسُولِهِۦ ۖ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَٰلِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ ٢٧٩

(Surah Al-Baqarah 2:278-279)

Only Allah (عَزَّ وَ جَلَّ) knows best.

Written by Maulana Abdurrahman Mohammad

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham