It is haraam to pay interest because of inflation

Is it harm to pay interest based on inflation.

Praise be to Allaah.

Yes, it is haraam to pay interest on loans even if that is because of inflation. 

The scholars are agreed that if it is stipulated that a loan be repaid with something extra, that is riba (usury) which is forbidden by Allaah and His Messenger. 

Ibn Qudaamah said in al-Mughni (6/436): 

Every loan in which it is stipulated that something extra be repaid is haraam, and there is no difference of scholarly opinion on this point. 

Ibn al-Mundhir said: They are unanimously agreed that if the lender stipulates that the borrower pay something extra or give him s gift, and gives the loan on the basis of receiving something extra, that is riba. 

It was narrated that Ubayy ibn Ka’b, Ibn ‘Abbaas and Ibn Mas’ood forbade loans that brought benefits. End quote. 

The scholars stated that the borrower must return the same amount of property as he borrowed, regardless of whether its value on the day of paying it back is higher or lower than it was on the day that he borrowed it. 

But Imam Ahmad (may Allaah have mercy on him) made an exception in one case, which is if the ruler has forbidden dealing in the currency in which the loan was made, in which case its value on the day of the loan should be worked out, then the loan should be repaid in the new currency. That is because a ban on dealing in it means that it is no longer valid and no longer has any value. 

Ibn Qudaamah said in al-Mughni (6/441): 

We mentioned that the borrower should return the same amount, whether the price has fallen or risen, or is still the same. … If the loan was in coins that the ruler has banned, and they are no longer dealt in, then the lender is entitled to the equivalent value, but he does not have to accept it. … Maalik, al-Layth ibn Sa’d and al-Shaafa’i said: He is not entitled to anything except what he lent, because that is not because anything happened to what he lent, so it is like a decrease in its price. The evidence for what we have said is that if the ruler bans it, then it cannot be spent and it is no longer valid. So it is as if part of it has been destroyed or lost. But as for a fall in prices, that does not mean that it cannot be repaid, whether it is a lot or a little, because nothing has happened to it, rather the price has changed. It is like wheat, when the price for it rises or falls. End quote. 

And Allaah knows best.

Writing a debt and having it witnessed

Can you please tell me what is the correct procedure for giving debt (Lending money to a person).
I am comitting a mistake/sin if i dont keep a witness and lend some money to another person.

Praise be to Allaah.

The correct way of lending money is that mentioned by Allaah in Soorat al-Baqarah, in the aayah on debt, where Allaah says (interpretation of the meaning): 

“O you who believe! When you contract a debt for a fixed period, write it down. Let a scribe write it down in justice between you. Let not the scribe refuse to write as Allaah has taught him, so let him write. Let him (the debtor) who incurs the liability dictate, and he must fear Allaah, his Lord, and diminish not anything of what he owes. But if the debtor is of poor understanding, or weak, or is unable to dictate for himself, then let his guardian dictate in justice. And get two witnesses out of your own men. And if there are not two men (available), then a man and two women, such as you agree for witnesses, so that if one of them (two women) errs, the other can remind her. And the witnesses should not refuse when they are called (for evidence). You should not become weary to write it (your contract), whether it be small or big, for its fixed term, that is more just with Allaah; more solid as evidence, and more convenient to prevent doubts among yourselves, save when it is a present trade which you carry out on the spot among yourselves, then there is no sin on you if you do not write it down. But take witnesses whenever you make a commercial contract. Let neither scribe nor witness suffer any harm, but if you do (such harm), it would be wickedness in you. So be afraid of Allaah; and Allaah teaches you. And Allaah is the All-Knower of each and everything.

And if you are on a journey and cannot find a scribe, then let there be a pledge taken (mortgaging), then if one of you entrusts the other, let the one who is entrusted discharge his trust (faithfully), and let him be afraid of Allaah, his Lord. And conceal not the evidence, for he who hides it, surely, his heart is sinful. And Allaah is All-Knower of what you do”[al-Baqarah 2:282-283] 

So the correct way of lending money is: 

1-     To specify the period of the loan, i.e., the length of time after which the loan must be repaid.

2-     Writing down the loan and the time when it is to be repaid.

3-     If the one who writes down the loan is a person other than the debtor, then the debtor is the one who should dictate to him the details of the loan.

4-     If the debtor is unable to dictate because of sickness or some other reason, then the one who should dictate on his behalf is his guardian.

5-     The loan should be witnessed, and the witnesses should be two men, or one man and two women.

6-     The lender has the right to ask the borrower to guarantee the loan with a pledge which the lender will keep. The benefit of the pledge is that if the time comes for the debt to be repaid and the borrower refuses to pay, the item in pledge may be sold and the debt paid with that money; anything left over is to be given to the owner of the pledge, namely the debtor. 

Guaranteeing a debt in one of these three ways (writing, witnesses or pledge) is mustahabb and is preferable, but it is not obligatory (waajib). Some of the scholars are of the view that it is obligatory to write down a loan, but most of the scholars say that it is mustahabb, and this is the more correct view. See Tafseer al-Qurtubi, 3/383. The reason for that is to protect people’s rights so that they will not be exposed to loss because of forgetfulness or confusion, and as a precaution against those who do not fear Allaah. 

If a loan is not written down and not witnessed, and no pledge is taken, that does not mean that it is a sin. The aayah itself indicates that: 

“then if one of you entrusts the other, let the one who is entrusted discharge his trust (faithfully), and let him be afraid of Allaah, his Lord”

[al-Baqarah 2:283 – interpretation of the meaning] 

Trust means not guaranteeing the loan by writing it down, having it witnessed or asking for a pledge. But in this case it is essential to fear Allaah. Hence in this case Allaah commanded the one who is in debt to fear Allaah and discharge his trust: “let the one who is entrusted discharge his trust (faithfully), and let him be afraid of Allaah, his Lord”. See Tafseer al-Sa’di, 168-172. 

If the loan is not written down and the debtor denies it or takes a long time to repay it, then the lender has no one to blame but himself, because he exposed his property to loss. It was narrated from the Prophet (peace and blessings of Allaah be upon him) that if a loan is not written down, the du’aa’ of the lender against the debtor will not be accepted if he takes too long to pay or he denies the loan. He (peace and blessings of Allaah be upon him) said: “There are three who call upon Allaah but their prayer will not be answered:… a man who lent money to another man but he did not have (the loan) witnessed.” (Saheeh al-Jaami’, 3075). 

Whoever thinks about these rulings and others will see the perfection of the Islamic sharee’ah and how concerned it is to protect people’s rights and not expose them to loss. For Allaah commands the one who has wealth to protect it and not to expose it to loss, no matter how little it may be: 

“You should not become weary to write it (your contract), whether it be small or big, for its fixed term”

[al-Baqarah 2:282 – interpretation of the meaning] 

Is there any other law that combines the interests of this world and the Hereafter in such a perfect way as the Islamic sharee’ah does? 

Could anyone come up with anything more perfect than these rulings? 

Allaah the Almighty indeed spoke the truth when He said (interpretation of the meaning): 

“And who is better in judgement than Allaah for a people who have firm Faith”

[al-Maa'idah 5:50] 

We ask Allaah to make us steadfast in adhering to His religion until we meet Him adhering to it. 

And Allaah knows best. May Allaah bless our Prophet Muhammad and grant him peace.

He let him off the debt and now he is asking for it to be paid

I lent money to one of my friends, and he brought the money to pay off the debt, but I said to him, “I don’t want anything,” and I did not take it. Then I needed the money after that, so I asked him for the money and he paid it off. Is that permissible?.

Praise be to Allaah.

If the lender lets the debtor off from paying the debt, then he no longer owes the money, and if he no longer owes the money he cannot be asked for it, unless he has borrowed money again. 

Based on this it is not permissible for you to ask for the money back after you let him off, and you have no right to the money that he gave you. You have to return the money to him. 

The Standing Committee was asked about a man who let off the person who owed him money, then he asked for it and took it from him. They replied: 

If the matter is as described, you do not have the right to take the money that you already let him off paying.  

Fataawa al-Lajnah al-Daa’imah, 13/177 

But if you told him (that you have no right to it) but he still let you keep the money, there is nothing wrong with taking it. 

And Allaah knows best.

Ruling on lender accepting a gift from the borrower

Someone borrowed some money from me, and he gave me a gift before he paid back the loan. What is the ruling on my accepting this gift?.

Praise be to Allaah.

If the person who borrowed from you was in the habit of giving you gifts before the loan, such as if he was a friend or relative of yours etc, then there is nothing wrong with your accepting the gift in that case, because it had nothing to do with the loan. 

But if this person was not in the habit of giving you gifts, it is not permissible for you to accept it, because it may be because of the loan, and if you accept it you may fall into riba (usury), because the basic principle regarding loans is that “Every loan which brings a benefit is riba,” and this loan will have brought you a benefit. See questions no. 30842 and 39505. 

Also: he may be giving it to you to make you agree to delay asking for repayment, which is also a kind of riba. 

This is indicated by the report narrated by Ibn Maajah (2432) from Yahya ibn Abi Ishaaq who said: I asked Anas ibn Maalik: What if man gives his brother a loan, then (the borrower) gives him a gift? The Messenger of Allaah (peace and blessings of Allaah be upon him) said: “If any one of you borrows something then he gives (the lender) a gift or gives him a ride on his riding-beast, he should not accept the gift or the ride, unless they used to treat each other in that manner beforehand.” Classed as hasan by Shaykh al-Islam Ibn Taymiyah in al-Fataawa al-Kubra, 6/159. 

Ibn Sireen narrated that ‘Umar (may Allaah be pleased with him) lent Ubayy ibn Ka’b (may Allaah be pleased with him) ten thousand dirhams, and Ubayy ibn Ka’b gave him a gift of some fruit from his land, but he returned that to him and did not accept it. Ubayy came to him and said: “The people of Madeenah know that I grow some of the best fruit and I have no need of it, so why did you refuse my gift?” Then later on he sent him (some fruit) and he accepted it. Ibn al-Qayyim said: ‘Umar refused it because he thought that the gift was because of the loan. When he realized that it was not because of the loan, he accepted it. This is the decisive answer concerning the issue of accepting a gift from a debtor. 

Al-Bukhaari narrated in his Saheeh (3814) that Abu Burdah said: I came to Madeenah and met ‘Abd-Allaah ibn Salaam (may Allaah be pleased with him). He said to me: “You are in a country where the practice of Riba (i.e. usury) is prevalent; so if somebody owes you something and he sends you a present of a load of chopped straw or a load of barley or a load of fodder then do not take it, as it is Riba.” 

This view was narrated from several of the Sahaabah. Ibn al-Qayyim said in I’laam al-Muwaqqi’een (3/136): It was narrated from more than one of them (i.e., the Sahaabah) – such as Ubayy ibn Ka’b, Ibn Mas’ood, ‘Abd-Allaah ibn Salaam, Ibn ‘Umar and Ibn ‘Abbaas – that they forbade the lender to accept a gift from the borrower, and they regarded accepting it as riba.

 Al-Shawkaani said in Nayl al-Awtaar (6/257): 

The point is that if gifts, loans etc are given for the sake of delaying payment of the loan, or as a bribe to the one who gave the loan, or so that the one who gave the loan will benefit as a result of his loan, that is haram, because it is a kind of riba or bribe. But if that is because the lender and borrower used to do that before this loan, then there is nothing wrong with it. If that is not done for any obvious purpose then it seems that the general prohibition should apply in this case.  

Some of the scholars are of the view that it is permissible for the lender to accept a gift from the borrower, but it is better not to do so, to be on the safe side. Ibn al-Qayyim said in I’laam al-Muwaqqi’een (3/136): The Sunnah of the Messenger of Allaah (peace and blessings of Allaah be upon him) and the way of his companions is more deserving of being followed. 

I say: 

Is there any other solution apart from refusing the gift or falling into riba? 

The answer is: Yes. If you insist on accepting the gift, you have two choices: you can respond in kind, giving something of equal or greater value, or you can regard it as part of the debt and waive the value of the gift from the amount owed. 

Sa’eed ibn Mansoor narrated in his Sunan from ‘Abd-Allaah ibn ‘Umar that a man came to him and said: I lent money to a man whom I do not know and he gave me a valuable gift. He said: Give his gift back to him, or count it as part of the repayment. 

Sa’eed ibn Mansoor also narrated that Saalim ibn Abi’l-Ja’d said: A man came to Ibn ‘Abbaas and said: I lent twenty dirhams to a man who sells fish and he gave me a fish which I estimated was worth thirteen dirhams. He said: Take seven dirhams from him. 

See al-Fataawa al-Kubra by Ibn al-Qayyim, 6/159. 

Shaykh Ibn ‘Uthaymeen said in al-Sharh al-Mumti’ (9/61): 

If someone were to say: So long as this is haraam, why shouldn’t he just give it back in the first place? 

We say: because he may feel too shy or embarrassed to return it, or he may hurt his companion deeply if he gives it back. So we say: Take it, and plan to repay him with a gift of equal or greater value, or to deduct its value from the loan. There is nothing wrong with this. 

What we have stated above about it being haraam applies if the gift is given before the loan is paid off. If it is given after the loan is paid off, there is nothing wrong with accepting it. 

Shaykh Ibn ‘Uthaymeen said in al-Sharh al-Mumti’ (9/59): 

If he is given a gift shortly after the loan is paid off or a long time after that, it is permissible. 

See al-Mughni, 6/437; al-Sharh al-Mumti’, 9/59-61.

Paying off a loan in a different currency because the value of currency has dropped

I gave someone a loan of $2000. At that time $100 was worth 150,000 dinars. Now the rate has changed and today $100 is worth 127,000 dinars, i.e., there has been a loss of 23,000 for every $100. 
My question is: Is it permissible for me to take dinars instead of dollars, and count 150,000 dinars for every $100, or not?.

Praise be to Allaah.

The basic principle is that a loan should be paid off in the same currency as the borrower took it, unless both parties agree at the time of repayment to make the payment in another currency, so long as that done at the rate on the day of repayment, and not the rate that was in effect on the day when the loan was given. The same applies to each instalment. It is permissible for both sides to agree at the time of payment to pay it in another currency, at the rate that is in effect on the day it is paid. 

The fall in value of the currency does not matter in this case, so long as the currency is in circulation in the market place. 

It is not permissible, when making a loan, to stipulate that repayment must be made in another currency. The one who does that has engaged in riba, because in fact this transaction is selling currency now for another currency to be paid later on, and this is riba. 

The scholars of the Standing Committee were asked: what is the ruling if someone borrows a thousand dollars, then when the time comes, he pays back what he borrowed in a currency other than dollars; such as paying in riyals, so instead of paying a thousand dollars he pays four thousand riyals? Please note that a thousand dollars at the time the loan was given was equivalent to 3500 Saudi riyals. 

They replied: The borrower should pay back in the same kind of currency as he borrowed. If he wants to pay it back in another currency, then it should be at the rate which is in effect at the time of paying it back. But it is not permissible for a Muslim to stipulate that at the time the loan is given, because in that case it will be a currency exchange without an on-the-spot exchange, and that is not permissible because of the hadeeth of ‘Ubaadah. End quote. 

Fataawa al-Lajnah al-Daa’imah (14/166). 

That has been explained in detail in the answer to question no. 99642. 

To sum up: The lender may take back $2000, as he loaned or, on the day of repayment, he may agree with the borrower on another currency, at the going rate of exchange on the day of repayment, no matter how much it is. 

And Allaah knows best.

Can he enter into a muraabahah transaction to pay off a loan that he owes?

I have a loan from the Dutch bank and there remains 30 thousand riyals to be paid. I want to borrow this amount of money from my friend in order to pay off the bank, then after that I will take another loan from the same bank by means of Islamic muraabahah, then pay off what my friend gave to me.

Praise be to Allaah.

Firstly:  

The Muslim should not be heedless with regard to the issue of debt, and take huge amounts of debt upon himself when there is no urgent need to do so. The Prophet (peace and blessings of Allaah be upon him) used to seek refuge with Allaah from debt, and he used to say: “O Allaah, I seek refuge with You from sin and debt.” Someone said to him: How often you seek refuge from debt, O Messenger of Allaah. He said: “When a man incurs debt, when he speaks he lies and when he makes a promise he breaks it.” Narrated by al-Bukhaari (2397) and Muslim (589). 

And the Prophet (peace and blessings of Allaah be upon him) stated that the shaheed (martyr) would be forgiven for everything except debt. Narrated by Muslim. This is indicative of the seriousness of debt. 

We do not advise you to engage in what is called “muraabahah” unless you are forced to do so or there is an urgent need for money. 

Secondly: 

The Muraabahah transactions that are offered by some banks are, in many cases, not free of Islamically objectionable factors. It may be a sale transaction on paper only, and a trick to engage in riba (usury). Many scholars and researchers have warned against them. 

Before entering into it, it is essential to make sure whether it is in accordance with sharee’ah. 

For information on the conditions of it being permissible – according to those who regard it as permissible – please see the answer to question no. 36408. 

Also see the answer to question no. 111896. 

And Allaah knows best.

Important note to learn and do reading online quran

Online Quran Tutor is the one who comes into mind when someone says to learn Holy Quran online or learning the Quran with the right pronunciation. The Holy Quran online is the word of Allah Ta’ala and recitation of the Quran is a sensitive matter. We have to listen quran with full attention and read quran online with the perfection and it is suppose to be read, there are many places in the Koran online which have to be recited with care and attention because if someone recites them with the wrong pronunciation, the whole context and meaning of the verse get changed. It’s the beauty of every Muslim parent to carry on with the teaching of Islam and letting there kids to learn quran  

Ruling on eating KFC (Kentucky Fried Chicken)

I work for about three years in KFC. They told me that the chicken is halaal. They also had a certificate. But now i have checked the e-codes on the site guidedway.com and i have seen that it is mushbooh. So i want to know ur opinion.
And i have one more very important question. They use shortening(oil). i checked that about shortening on guidedway.com and it says IT DEPENDS. so i am not sure whether is haraam or halaal. my question is can I eat fries or is it better to avoid it.
What is the ruling on fish burger?.

Praise be to Allaah.

Firstly: 

In order for it to be permissible to eat chicken and meat that is sold in Muslim countries and elsewhere, two conditions must be met: 

1.     The meat should have been slaughtered in the manner prescribed in sharee‘ah; it should not have been stunned with electricity, or drowned in water, or any other means of killing that is done in some countries.

2.     The one who slaughtered the meat should have been a Muslim or a kitaabi (one of the people of the Book, i.e., a Jew or Christian); it is not permissible to eat meat slaughtered by a communist, atheist or idol-worshipper. 

See the answer to question no. 83362. 

If it becomes clear to you that the chicken sold in these restaurants has not been slaughtered in the manner prescribed in sharee‘ah, it is not permissible for you to eat it and it is not permissible for you to work with those who sell it, because that comes under the heading of cooperating in sin and transgression. 

Secondly: 

It is permissible to eat fried meat and fish from these restaurants, subject to two conditions: 

1.     That it is not fried in the same oil as the non-halaal chicken or in vessels in which chicken was fried, until they have been washed, because the non-halaal chicken is maytah (dead meat) and is najis (impure).

2.     The meat should be halaal. 

And Allah knows best.