Buying properties on interest loans : buying furniture by bank loan

Fatawa Question

Dear Dr. Monzer As-Salamu Alaykum, please help us in answering this question ; the questioner is from Albania : "Salamu Alaykum, I am currently building a house for my family, and in couple of months I need to buy furniture for the house. There is a furniture shop in my town that offers interest-free loan to the customers. Shop owner admitted that he will pay the interest to the bank, which means I will not have to pay to the bank no interest at all. The only amount I have to pay to the bank is administrative fee for the bank service which is 20 Euro in total. Again, for me payment will be without interest, but the bank will take interest from shop owner. Is this regarded as coming under the heading of interest-based loans ? Is it permissible for me to take this loan or not ?" Many thanks for your effort Muhammad

Fatwa

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Publication Date

2009-03-13

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Purchasing
• Furniture
• Bank loans
• Usury

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-729719

• APA
• MLA
• AMA