Darul Ifta Ibn Masood

Loaning Interest Funds

· 1 Rabiʻ I 1446 AH1 min readEnglish

Question

A non-Muslim requested a loan from a Muslim and said he’ll pay them X amount extra (i.e. interest). The Muslim agreed to this. When questioned about it, they said that the money that they are borrowing to the person is from their interest money, so it’s Haraam money on Haraam money, which makes it Jaaiz, because they’ll be giving it away anyway. Is this permissible to do?

Answer

The recipients of interest funds are poor non-Muslims or poor Muslims. The funds should not be accumulated in one’s bank account or possession. Loaning interest funds to a third party irrespective of whether one will be accruing interest on it or not, is not permissible, rather on receiving interest funds, it should be disposed of to the correct recipients.

Answered by
Maulana Abdul Kader Fazlani
Checked & approved by
Mufti Mohammed Desai Saheb
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