Fatwa n°: 98

Category: Fatwas about selling and monetary transactions

Buying a house through the bank

Question:

I am the father of ten children and have been living in my wife’s mother’s house for twenty years. The house has one room and a kitchen. I have applied many times to official authorities for a house but in vain. A friend of my son suggested that my son give him a plot of land which the National Reserve and Saving Fund (CNEP Bank) undertakes and finance by giving a credit that the beneficiary will pay in installments with interests.

So, what is the ruling concerning such act, taking into consideration the living conditions of the family. May Allah reward you with good.

Answer:

All praise is due to Allah, the Lord of the Worlds. Peace and blessing be upon whom Allah sent as a mercy to the Worlds, upon his Family, his Companions and his Brothers till the Day of Resurrection.

Loaning from banks or from similar current monetary establishments which are based upon usurious transactions is absolutely forbidden, as the Quranic verses revealed on this kind of usury of debts stipulate. In fact, Allah عزَّ وجلَّ warned those who deal in usury of war, from Him and His Messenger. The prophetic hadiths which warn against usury are also numerous.

However, this kind of absolute forbiddance is allowed by scholars in case of an occurring necessity or extreme need which pushes to do such act, after the impossibility to find other issues in order to get out of this situation of financial embarrassment and social discomfort, like the fact of providing food for oneself and one’s children in order to push away famine from them and providing clothes and shelter for protection and the necessary treatment in which there is a fear of illness aggravation if the ill one is not treated immediately, or other cases in which the person reaches a situation which, if not taken into account, the person would be certain or would fear that his necessary interests which lie in the preservation of the five vital necessities⁽¹⁾ will be lost, but with the condition that the necessity be really existent, not fictive or probable.

As for the necessity, it is for the concerned person to judge it according to his faith. If there is necessity, the ruling of forbiddance becomes cancelled, but just in such a way that he pushes the necessity, according to the rules which are based upon the texts of the Sharia like: “Necessity makes forbidden things permissible” and the rule: “ A restricted situation requires facilitation” In accordance with Allah عزَّ وجلَّ saying:

﴿وَمَا جَعَلَ عَلَيْكُمْ فِي الدِّينِ مِنْ حَرَجٍ﴾ [الحج: 78].

The meaning of the verse:

﴾and has not laid upon you in religion any hardship﴿ [Al-Hajj (The Pilgrimage): 78].

And the verse:

﴿مَا يُرِيدُ اللهُ لِيَجْعَلَ عَلَيْكُمْ مِنْ حَرَجٍ﴾ [المائدة: 6].

The meaning of the verse:

﴾Allah does not want to place you in difficulty﴿ [Al-Mâ'ida (The Table Spread with Food): 6].

Moreover, I will not forget to mention that the necessities and cases of need, which are duly considered, should be evaluated in a proper manner, following the rule: “Necessities should be evaluated in a proper manner” and the rule: “If there is ease, the restriction comes back” and the rule: “If the danger disappears, the interdiction will become effective”.

Finally, if the person does such act, he should however condemn it and be incensed, without willful disobedience nor transgressing due limits. Allah is, certainly, Forgiving and Merciful.

The perfect knowledge belongs to Allah سبحانه وتعالى. Our last prayer is all praise is due to Allah, the Lord of the Worlds. Peace and blessing be upon our Prophet, his Family, his Companions and his Brothers till the Day of Resurrection.

Algiers, 26 Sha`bân 1415.
Corresponding to: January 28^th,1995