[Q 463] Loan with Interest from Non-Muslim Organization, Taking Interest-Based Loan from Non-Muslims, Ruling on Borrowing from Non-Muslim Institutions

QUESTION:

My question is that can we take a loan from a non-muslim organization that offers interest base loan it will be acceptable?

ANSWER:

Without necessity and Shar‘i need (Hajat Shar‘i – religiously valid need), taking a loan from a Harbi Kafir (non-Muslim at war with Muslims) or from any institution of the disbelievers, and then giving them extra money (interest) or benefiting them in this way, and entering into such a contract is impermissible (Na-Jaiz – unlawful) and sinful, because it causes harm to the Muslim. Yes, if there is a Shar‘i need, then a case of permissibility may exist.

Imam Ibn Mazah Hanafi رحمہ اللہ تعالى states:

وَرَأَيْتُ فِي بَعْضِ الْكُتُبِ أَنَّ هَذَا الِاخْتِلَافَ فِيمَا إِذَا اشْتَرَى مِنْهُمْ دِرْهَمًا بِدِرْهَمَيْنِ لَا يَجُوزُ بِالِاتِّفَاقِ؛ لِأَنَّ فِيهِ إِعَانَةً لَهُمْ بِقَدْرِ الدِّرْهَمِ الزَّائِدِ وَمَبَرَّةً فِي حَقِّهِمْ بِذَلِكَ

(Al-Muhit al-Burhani, Vol. 07, p. 231, Dar al-Kutub al-‘Ilmiyyah)

Imam Ibn al-Humam رحمہ اللہ تعالى states:

وَقَدِ الْتَزَمَ الْأَصْحَابُ فِي الدَّرْسِ أَنَّ مُرَادَهُمْ مِنْ حِلِّ الرِّبَا وَالْقِمَارِ مَا إِذَا حَصَلَتِ الزِّيَادَةُ لِلْمُسْلِمِ نَظَرًا إِلَى الْعِلَّةِ وَإِنْ كَانَ إِطْلَاقُ الْجَوَابِ خِلَافَهُ

(Fath al-Qadeer, Vol. 07, p. 39, Dar al-Fikr)

Answered by: Mubashir Attari (AskMufti Scholar)
Verified by: Mufti Sajid Attari
Translated answer
Date: 4th October 2025