Taking mortgages to buy a residence in western countries : taking loan to build a house

Fatawa Question

Assalamu Alaykum Wa Rahmatullahi Wa Barakatuh, I'm United Nations staff member. We have been paid our salaries through UN Bank,. It has branches all over the word. Membership is restricted only to UN staff. It is NON Profit, cooperative financial institution. It was established mainly to serve UN staff. It offers loans for house, education and cars. I'm thinking of taking loan to build a house. They take 9 % interest from the total amount. The amount is to be paid back within 8 years. They justify the interest to cover management / rentals expenses. Now, I need to know if this is Halal or Haram. I know a lot of Muslims who have taken loan from this institution, But need to verify. Thank you very much for your great support. God bless you and all Muslims. Osman A. Elawed United nations Angola / South Africa. Visitor notes : please note. That installment they take from salary. The loan requires no warranty. Jazakum Allahu Khairan for your constant help

Fatwa

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Publication Date

2006-02-02

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-789734

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