[Housing system in Ethiopia]

Fatawa Question

Aselamu Alaykum We Rahmatullah We berekatuhIn Ethiopia, the government has designed a housing system for the poor and middle income citizens. The government sells houses in 15 to 30 % pre-payment and the remaining cost is paid in monthly basis in 20 years. The amount of money paid in 20 years is more than the price agreed to be paid. For example : the cost of a house is 100,000 Birr. I paid 15,000 Birr primarily. Then I agreed with the government Bank to pay 800 Birr per month for 20 years. Which can be 192,000 Birr at the end of the 20 years. I pass through this system as there is no way to have a house. The monthly payment I has to pay according to the bank agreement is almost the same as I pay for house rent. Is it lawful in Islam to buy this houses ?

Fatwa

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Publication Date

2011-12-23

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Housing
• Financing
• Ethiopia
• Usury

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-732919

• APA
• MLA
• AMA