0% Credit cards

14 Sep 2019 · 15 Muharram 1441 AH1 min readFatwa 43151English

Question

Please advise if the following situation would be permissible in Islam-

There are 0% money transfer credit cards that allow you to borrow a fixed amount of money (£20k for example) from the credit card straight into one's bank account. This £20k can be repaid interest free unto a maximum of 12-24 months depending on the card issuer. However, there is a one off fixed bank fee to get this interest free loan. The person is quite sure that he will be able to return this £20k well before the deadline. The intention of borrowing this £20k is to expand one's business. Is this allowed?

Jazakallah

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In order for us to advise, forward us the terms and conditions of the credit card company and the once-off fixed bank fee.

You may email your clarification to: admin@daruliftaa.net

Ref: Ahmed-Ur-Rahmaan Patel

And Allah Ta’āla Knows Best

Ahmed-Ur-Rahmaan Ibn Mufti Mohammed Patel (Rahmatullah Alaih)

Student Darul Iftaa

Azaadville, Johannesburg, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

Answered by: Ahmed-Ur-Rahmaan Ibn Mufti Mohammed Patel (Rahmatullah Alaih)
Checked & approved by: Mufti Ebrahim Desai

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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/43151
Fatawa SA: https://fatawa.co.za/fatwa/askimam-43151

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