Question:
Salaam, I have over the years collected various loans with interest, now I have a very difficult time paying all the invoices and I wonder if I can apply through the bank for a collective loan for all loans so that I only have one interest and loan. I have tried to find other alternatives but the sum is so high that I have not succeeded. I’m also wondering if I can add a co-applicant to increase my chance of getting the group loan granted, I will pay off the loan and its interest as soon as possible but the person should just be as a security, is that haram for this person? without a co-applicant, it is 95% that I am denied.
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
Your concern to adopt halaal is a sign of your taqwa and Allah consciousness. As you understand, interest is a major sin and one must abstain from it in all its forms
Shariah strictly prohibits and condemns all forms of Riba (interest). Interest is an inherent element of loans from non-Islamic banks and financial institutes, hence totally forbidden.
The Quran explicitly warns against the use of interest,
يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ. فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ.
“O those who believe, fear Allah and give up what still remains of the Riba(interest) if you are believers. But if you do not then listen to the declaration of war from Allah and His Messenger”. (AlBaqarah, verse 278,279)
يَا أَيُّهَا الَّذِينَ آمَنُوا لَا تَأْكُلُوا الرِّبَا أَضْعَافًا مُضَاعَفَةً وَاتَّقُوا اللَّهَ لَعَلَّكُمْ تُفْلِحُونَ.
“O you who believe! Eat not Ribâ (usury) doubled and multiplied, but fear Allâh that you may be successful.”(Al Imran verse 130).
Rasulullah Sallallahu Alayhi Wasallam) said:
عن جابر قال: لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه(مسلم)
“Rasulullah (Sallallahu alayhi wasallam) cursed the one who consumes, deals, records and bears witness for interest based transactions”. (Muslim1598)
We suggest, in your mentioned situation to make a sincere effort to pay out the various loans as soon as possible, without taking a further interest accruing loan. As you now understand the impermissibility on conducting such unlawful transactions, you should not enter into a new one. Making someone a co applicant is also impermissible for them.
We advise you recite the following Dua frequently,
| Abu Saeed Kudri (R.A.) narrates that once a person mentioned to Prophet Mohammad (ﷺ.) that he was concerned about his major debts. Prophet Mohammad (ﷺ) replied “Shall I not show you those words by saying which Allah will remove your concern and pay your debts?” The person asked “What is it, O Messenger of Allah?” Prophet Mohammad (ﷺ.) told him to recite the following morning and evening: |
| اللَّهُمَّ إِنِّي أَعُوذُ بِكَ مِنَ الْهَمِّ وَالْحَزَنِ وَأَعُوذُ بِكَ مِنَ الْعَجْزِ وَالْكَسَلِ وَأَعُوذُ بِكَ مِنَ الْبُخْلِ وَالْجُبْنِ وَأَعُوذُ بِكَ مِنَ غَلَبَةِ الدَّيْنِ وَقَهْرِ الرِّجَالِ |
| “O Allah I seek refuge in You from worry and grief, I seek refuge in You from hopelessness and laziness, I seek refuge in You from miserliness and cowardice and I seek refuge in You from overwhelming debt and from the force of men”. |
| The person stated that he recited this dua and Allah removed all his worries and debts. (Abu Dawood) Also the following Dua, اللَّهُمَّ اكْفِنِي بِحَلَالِكَ عَنْ حَرَامِكَ وَأَغْنِنِي بِفَضْلِكَ عَمَّنْ سِوَاكْ “O Allah, save me from haraam and make the halaal sufficient and by your boon/favour make me independent from others”. |
And Allah Ta’āla Knows Best
Mufti Arshad Ali
Darul Iftaa, Jaamia Madinatul Uloom (Trinidad)
