Mufti Online — Madrasah Ta'leemuddeen

Processing fee for a loan

· 11 Dhuʻl-Qiʻdah 1438 AH1 min readEnglish

Question

One of the banks in my residence country is offering a short term interest free loan. I am only interested in using this loan because it is interest free. It has a fixed processing fees (1 % of the amount of loan) and a onetime fixed insurance fees to be paid. Can you please advise, if it is alright to utilize this loan.

Answer

When there is an element of haraam in this arrangement then abstain.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/21168
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