Interest: Its effects on good
actions

Q288 :Because my savings are not enough for the
purpose, I have been contemplating the possibility of obtaining a bank
loan in order to build a house for my family. My father has written to
me that this is not acceptable from the Islamic point of view. He also
said that my prayer, sacrifice, zakah and other acts of worship will
not be acceptable in this building. Moreover, the bank clerk is asking
for a netmission to release the loan which I feel that it is, in actual
fact, a bribe. I will be grateful for your advice.


A288 : There are two main aspects to the first
question : Obtaining a bank loan and paying interest on the borrowed
money; and the effect of such an action on one’s good deeds. The
question of bribe is a side issue on which we will talk later. There
is no doubt that dealing in usury, whether one receives it or pays it,
is forbidden. The Prophet says: “Allah curses the one who devours
usury, the one who pays it, the one who writes the contract between
them and the two witnesses to the contract.” A straightforward bank
loan which earns interest falls within this type of transaction.
Therefore, if you go to the bank and ask for a loan and you arrange to
pay it back by installments, adding interest to the principle amount
you obtained from the bank, then you are netmitting a serious offense.
Muslims who live in Europe and America often face the problem of buying
a house on mortgage. Several scholars have reluctantly sanctioned forms
of this transaction on the basis of necessity. Since banks offer
different forms of mortgages, each one will have to be judged on its
terms and conditions. The other aspect of your question concerns the
effect of taking a bank loan which is acnetpanied by the payment of
interest on your worship and other good deeds. Your father tells you
that your prayer and zakah and other good deeds, which you may do in
your house, partially financed by a bank loan, will not be acceptable.
I am afraid your father is mistaken. Allah says in the Qur’an :
“Whoever has done an atom’s weight of good will see it then and whoever
had done an atom’s weight of evil will see it then also.” (99; 7-8)
This means that what you do of good deeds will be credited to you, but
your bad ones will be recorded against you as well. It is unbelievers
whose good actions are of no use to them because their actions are not
based on the proper foundation of good deeds, namely, faith. I am
afraid, however, that dealing with usury is a very serious offense
which could require much more than the fulfillment of basic duties to
offset it. If you are to pay bribe in order to get that loan, then
there is all the more reason for not getting it. Payment of bribes is
forbidden. Allah curses the one who bribes and the one who receives
bribery.


Our Dialogue ( Source : Arab News – Jeddah )