Fatwa No : 82079
What is the ruling on taking an interest-based loan from a bank?

What is the ruling on taking an interest-based loan from a bank?

What do the esteemed scholars and respected muftis say regarding the following matter: I live in Germany and wish to establish my own business in Europe. I would like to ask whether it is permissible to take money from a bank to purchase a running business, as I do not currently have sufficient funds to buy it on my own. The arrangement is as follows: I will invest 25% of the capital, and the bank will invest 75%. The ownership of the business will remain mortgaged with the bank until I repay the entire 75% share along with profit within five to ten years. Will this be considered interest (riba)? What does Islamic Shari‘ah say about such an arrangement?

الجوابُ حامِدا ًو مُصلیِّا ً

Respected questioner, if you intend to take a loan from the bank to start a business and then return the amount along with profit within the agreed period, then this matter is undoubtedly impermissible and considered interest-based (riba), which must be strictly avoided. However, if you wish to enter into a partnership business with the bank, then you should write down the complete details of the terms and conditions agreed upon between you and the bank regarding this business. After that, a proper ruling according to Shari’ah can be sought.

مأخَذُ الفَتوی

کمافی تفسیر المظھری: یمحق اللہ الربو ویربی الصدقات
والمعنی ان اللہ تعالیٰ حرم الزیادۃ فی القرض علیٰ القدر المرفوع اھ(1/399)۔
وفی تفسیر القرطبی: والربا الذی عرف الشرع شیئان: تحریم النساء والتفاضل فی العقود وغالبہ ماکانت العرب تفعلہ، من قولھا للغریم اتقضی ام تربی؟ فکان الغریم یزید فی المال ویصیر الزائد علیہ وھذا کلہ محرم باتفاق الامۃ اھ(2/236)۔
وفی الدرالمختار: کل قرض جر نفعاً فھو حرام اھ(5/166)۔
وفیہ ایضاً: الربا کل زیادۃ خال عن العوض اھ(5/169)۔