[Q 365] Earnings from Mortgaged Property of Non-Muslim

Question

I live in the UK. Here, can I lend money to a non-Muslim, take his house as collateral, and then either reside in it or rent it out to earn income?

بسم الله الرحمن الرحيم
الجواب بعون الملك الوهاب اللهم هداية الحق والصواب

Answer

It is permissible to get profit from an item mortgaged by a Harbi Kafir (non-Muslim at war with Islam), as the property of a Harbi Kafir is considered Mubah (permissible). Just as it is lawful to take possession of the permissible wealth of a Harbi Kafir with his consent through a loan, similarly, it is permissible to benefit from his permissible wealth with his consent. However, the condition is that this should not be with the intention of earning interest or any profit on the loan; rather, it should be considered a permissible benefit obtained from his property.

It is stated in Radd al-Muhtar:”

لا بأس بأن يأخذ منهم أموالهم بطيب أنفسهم بأي وجه كان لأنه إنما أخذ المباح على وجه عري عن الغدر

(Radd al-Muhtar, Vol 4, page 189)

In Fatawa Ridawiyya, it is mentioned: “Taking property as collateral from a Hindu and benefiting from it is not problematic, provided that it is not done with the intention of gaining profit on the loan or earning interest, but rather that possession of the property with the Hindu’s consent is lawful, and benefit is derived from this permissible asset. ‘فانما الاعمال بالنیات وانما لکل امرء مانوی’ (‘Indeed, actions are judged by intentions, and each person will have what he intended’).”

(Fatawa Ridawiyya, Vol. 25, p. 254, Raza Foundation, Lahore)

In Fatawa Amjadiyya:
Question: Is it permissible for the mortgagee to benefit from the house of a Hindu or Christian held in mortgage?
Answer: It is permissible as long as it is limited to them. However, if, God forbid, he develops a habit of engaging in similar transactions with Muslims, then it is impermissible and haram (forbidden).

(Fatawa Amjadiyya, Kitab al-Rahn, Vol. 3, p. 344, Maktaba Ridawiyya, Karachi)

Answered by: Hammad Madani (Askmufti Scholar)
Verified by: Mufti Sajid Attari 
Translated answer
Date: 4th November 2024