You are here

Loan-Interest

Q:

Assalamu’alaikoom Ya Mufti, Please kindly explain to me why a conventional loan annuity interest that is originally Haram due to Riba can change to Halal after the said interest is converted to Ujrah and the said Loan Transaction is converted to the ‘Aqad Ijarah. Jazakallah khair.

A:

Alaykum Salaam

The nature of the contract changes in Ijarah, and its rulings are not the same as interest loans.

The issue of taking and paying interest from non-Muslims has also been allowed by the Marja in any case.

Regards

Abbas Jaffer