Ruling on Borrowing from the Bank
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Question: If a man needs some money for household expenses, to pay the rent for his house, or something similar, and he finds no one to lend him money or to sell to him on credit, is it permissible for him to borrow from the bank?
Answer: If borrowing from the bank is done in a Sharia-compliant manner; for example, if he takes a loan and repays the same amount without any increase, or if he buys a commodity from them for a specified term, even if the price is higher than the current cash price, then there is no harm.
However, if he borrows from them in the form of riba, this is not permissible; because Allah, Glorified and Exalted is He, has forbidden riba in His great Book, and in the Sunnah of His noble Messenger (peace and blessings be upon him), and there are warnings regarding it that are not found regarding eating carrion or the like. Allah, Glorified and Exalted is He, said: [al-Baqarah: 275]. The scholars of tafsir said that the meaning of this is that he will rise from his grave on the Day of Resurrection like a madman. Then Allah, Glorified and Exalted is He, said after that: [Al-Baqarah 2:275] يَمْحَقُ اللّهُ الْرِّبَا وَيُرْبِي الصَّدَقَاتِ [al-Baqarah: 275-276].
It is authentic from the Messenger of Allah (peace and blessings be upon him) that he said:Sahih Muslim 1598. It was narrated by Muslim in his Sahih.
The verses and hadiths regarding the prohibition of riba and the warnings against it are numerous and well-known. The fact that a person in need cannot find someone to lend him money or sell to him on credit does not make him a person in dire necessity for whom carrion or riba becomes permissible. This is a statement that has no basis in the Shari'ah; because it is possible for the person in need to work with his hands until he obtains what satisfies his need, or to travel to other lands until he finds someone to lend him money, or to sell to him on credit for a specified term.
The person in dire necessity is the one who fears for his life if he does not eat carrion or the like; due to the severity of famine, and his inability to satisfy his hunger through earning or otherwise. The need of those who deal with banks through riba is not in the category of dire necessity that permits carrion or the like. Many people have made the matter of riba easy for themselves, until they deal in it and issue fatwas to people regarding it based on the slightest doubt. This is only due to a lack of knowledge, weak faith, and the prevalence of the love of money in souls. We ask Allah for safety and well-being from what angers Him. And whenever it is possible to avoid dealing with the bank and not borrowing from it, even through the Sharia-compliant methods we mentioned earlier, that is better and safer; because the funds of the bank are generally not free from what is forbidden. And the Prophet (peace and blessings be upon him) said:Bulugh al-Maram 16:32. And Allah is the One to be asked for help.
Answer: If borrowing from the bank is done in a Sharia-compliant manner; for example, if he takes a loan and repays the same amount without any increase, or if he buys a commodity from them for a specified term, even if the price is higher than the current cash price, then there is no harm.
However, if he borrows from them in the form of riba, this is not permissible; because Allah, Glorified and Exalted is He, has forbidden riba in His great Book, and in the Sunnah of His noble Messenger (peace and blessings be upon him), and there are warnings regarding it that are not found regarding eating carrion or the like. Allah, Glorified and Exalted is He, said:
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity
الَّذِينَ يَأْكُلُونَ الرِّبَا لاَ يَقُومُونَ إِلاَّ كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّThat is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
ذَلِكَ بِأَنَّهُمْ قَالُواْ إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىَ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللّهِ وَمَنْ عَادَ فَأُوْلَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ It is authentic from the Messenger of Allah (peace and blessings be upon him) that he said:
cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal.
لعن آكل الربا، وموكله، وكاتبه، وشاهديه، وقال: هم سواءThe verses and hadiths regarding the prohibition of riba and the warnings against it are numerous and well-known. The fact that a person in need cannot find someone to lend him money or sell to him on credit does not make him a person in dire necessity for whom carrion or riba becomes permissible. This is a statement that has no basis in the Shari'ah; because it is possible for the person in need to work with his hands until he obtains what satisfies his need, or to travel to other lands until he finds someone to lend him money, or to sell to him on credit for a specified term.
The person in dire necessity is the one who fears for his life if he does not eat carrion or the like; due to the severity of famine, and his inability to satisfy his hunger through earning or otherwise. The need of those who deal with banks through riba is not in the category of dire necessity that permits carrion or the like. Many people have made the matter of riba easy for themselves, until they deal in it and issue fatwas to people regarding it based on the slightest doubt. This is only due to a lack of knowledge, weak faith, and the prevalence of the love of money in souls. We ask Allah for safety and well-being from what angers Him. And whenever it is possible to avoid dealing with the bank and not borrowing from it, even through the Sharia-compliant methods we mentioned earlier, that is better and safer; because the funds of the bank are generally not free from what is forbidden. And the Prophet (peace and blessings be upon him) said:
So he, who saves himself from these doubtful things, saves his religion and his honor
من اتقى الشبهات فقد استبرأ لدينه وعرضه
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.