What is the ruling on the income of one who bought a house with a bank loan and rented it out for more than his installment, and he has accelerated his installment to get rid of the riba?
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Question:
I bought a house in my residence on installments with a loan I obtained from the bank, and I am now renting out the house, and the rent is more than the installment I pay to the bank. So what about this income? Is it halal or haram? I have also accelerated the repayment of the loan with large installments so that I can get rid of the riba I pay to the bank.
Answer:
First, riba is not permissible. You should repent to Allah the Exalted and return to Him, the Exalted, and give in charity what you have gained from the riba. You should dispose of it in the paths of righteousness, to get rid of it, as a means of getting rid of the riba. So what you have gained from the riba, you should dispose of it in the paths of righteousness, such as charity for the poor and the needy, paving roads, providing for the awliya (close friends of Allah), and giving rent. And whoever repents, Allah the Exalted accepts his repentance.
I bought a house in my residence on installments with a loan I obtained from the bank, and I am now renting out the house, and the rent is more than the installment I pay to the bank. So what about this income? Is it halal or haram? I have also accelerated the repayment of the loan with large installments so that I can get rid of the riba I pay to the bank.
Answer:
First, riba is not permissible. You should repent to Allah the Exalted and return to Him, the Exalted, and give in charity what you have gained from the riba. You should dispose of it in the paths of righteousness, to get rid of it, as a means of getting rid of the riba. So what you have gained from the riba, you should dispose of it in the paths of righteousness, such as charity for the poor and the needy, paving roads, providing for the awliya (close friends of Allah), and giving rent. And whoever repents, Allah the Exalted accepts his repentance.
Source
قناة «فضيلة الشيخ ابن باز Alsheikh Binbaz»، 323 ما حكم دخل من اشترى بيت بقرض من البنك وأجره بأكثر من قسطه وقد قام بتعجيل قسطه للتخلص من الربا؟ — youtube.com
The Arabic text is a machine transcription of the audio recording.
