Buying Property On Instalments

Question

Are we allowed to purchase property in a non-Muslim country on instalments where the matter of bank interest (riba) is involved?


Answer

In our view there is nothing wrong with this kind of transaction on the part of the customer. One certainly needs a lodging to live in. And there are many other situations where one is forced to borrow money from individuals and banks on interest. We believe that religious sources do not object to pay interest when circumstances force you.

However, before taking such loans on interest one must be sure that he cannot do without the thing he is going to take loan for. In my opinion lodging is a basic necessity of life for which taking loan is justified.

For a detailed analysis of the question of paying interest please refer to: The Question of Interest.

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