Loan

In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient (i.e. the borrower) incurs a debt, and is usually liable to pay interest on that debt until it is repaid, and also to repay the principal amount borrowed.

204177

Government . Students . Education . Interest . Loan

In the UK, students receive government loans for higher education, which they must repay as a small percentage of their salary after reaching a certain income level. Is this practice permissible in Islam, considering the interest involved?

Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 4 months ago

It is permissible to receive money from the government for studying expenses knowing that the government will take it back in instalments from your future salaries.

Wassalam.

197102

Khums . Money . Loan

As a student with 50,000 rupees in savings, of which 35,000 is loaned out and uncertain to be repaid soon, I want to understand if I am required to pay Khums only on the remaining 15,000 rupees or also on the loaned amount?

Loaned amounts do not belong to you as you has borrowed it from others, so, Khums is not obligatory on you for any amount which is not owned by you. Whatever you own on your date of Khums is to be calculated by you in your Khums.

Wassalam.

185442

Khums . Loan . Mutual Fund

Is it permissible for a person who invests in a mutual fund every month but does not have enough remaining to pay Khums on the invested amount on their Khums date, to borrow or take a loan to fulfill their Khums obligation?

Yes, it is permissible to borrow to pay your obligatory Dues when you don’t have enough cash with you to pay your Khums or other dues.

Wassalam.

169454

Investment . Cryptocurrency . Loan

Is it allowed in Islam to engage in leveraged trading for cryptocurrencies or stocks, which involves borrowing money to trade with?

Yes it is permissible to engage in leveraged trading. As far as the trading itself is lawful.

Wassalam.

178071

House . Loan

Is it permissible in Islam to purchase a better house or car on installment if I can afford a decent one through outright payment?

Yes it is permissible.

'Wassalam.

164387

Currency . Time . Loan

Should I repay my debt, that was obtained in rupees, based on today's exchange rate or based on the exchange rate at the time I borrowed, considering that I earn in dollars?

You should not harm the person who did good to you by lending you his money when you were in need. In fact it is recommended to pay him a gift above his original money. Such gift is not obligatory in you but just recommended but you should never give him less than the real value of what he gave you.

‘Wassalam.

165029

Time . Loan . Forex

Should I repay my debt, that was obtained in rupees, based on today's exchange rate or based on the exchange rate at the time I borrowed, considering that I earn in dollars?

If the difference of currency value is high, then you need to be just and not harm those who lent you by giving them less than what they gave you.

'We need to deal with others like what we expect them to deal with us.

'Wassalam.

158393

Loan . Bank . Money . Interest

I am starting a business in the EU and getting a loan from an EU bank. When I borrow money, there will be an interest that is obligatory for me to pay. Is this permissible as my real intention is to get capital from the bank?

Yes. It is permissible to get a capital from non Muslim bank or financial institute and use it in lawful way.

Wassalam.

154216

Mother . Father . Money . Gold . Loan

Is it permissible for my mother to take funds from my father, using money he has earned illegally, who wants to return the value of some gold he had borrowed earlier from her?

Using Unlawful money is not allowed at all. It must be returned to the real owners.

Wassalam.

153244

House . Iran . Western Society . Loan

Is it permissible in Islam to borrow money in a Western country to purchase a house in Iran?

Yes it is permissible to borrow money to use it in buying house or in any other lawful cause.

Wassalam.

143483

Loan . Interest . Students

Can obtaining a student loan in Germany be considered allowed? The loan does not incur interest as long as the payment is made within a certain time, after which a 6% interest applies.

It is allowed for Muslim students to take such amount from non Muslim government or institutions.

'Wassalam.

135667

Loan . Car . House

Is taking a loan to buy a car or house acceptable or forbidden?

It is allowed to take money from non Muslim bank or financial institute for any lawful purpose.

Wassalam.