Providence funds and retirement accounts : loan from my retirement account

Fatawa Question

Dear Dr Monzer, Thank you very much for your visit and workshop in Cincinnati early in Ramadan. Those who attended were very appreciative of your contributions and thankful to your insight. I have a quick question for you and would appreciate your prospective : I am currently paying off my home through an Islamic coop. However, they are charging much more than the average in the market (8-8.5 % compared to 4 %). I am thinking of taking a loan from my retirement account with my company to pay off the remaining balance on the home. However, the loan has and interest associated with it, though I will be paying interest to myself in this case. What would be the status of such loan, is it permissible ? For additional info, my retirement plan is mainly company contribution in company stocks and is independent of my contributions. JAK for your help Ashraf

Fatwa

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Publication Date

2012-08-15

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Pensions
• Savings
• Usury

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-730390

• APA
• MLA
• AMA