Fatwa ID: 01246

Answered by Mufti Mohammed Tosir Miah

Question:

Using interest money to pay for interest based loan

Answer:

In the name of Allah, the most Beneficent, the most Merciful.

The recipients of interest money are the poor and destitute. However, some scholars such as Hadhrat Ashraf Ali Thanwi (RA) and Molana Khalid Saifullah Rahmani have said that one may use the interest money to make toilets for the poor or to repay an interest based loan. (Raddul Muhtar p.553 v.9 & Jadeed Fiqhi Masaail p.406 v.1)

Therefore, it will be permissible for you to use interest money to pay for the interest-based loan

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham.