Fatwa: # 19206
Category: Financial Transactions
Country: India
Date: 16th April 2011

Title

Could you please let me know that if a bank offers 0% interest loan on any home appliances with istallment wise system is fine for me to use that loan or not.

Question

Could you please let me know that if a bank offers 0% interest loan on any home appliances with istallment wise system is fine for me to use that loan or not.

They charge some amount for the "Paper Or Document".

Kindly let me know if its fine to use  such loan facility & also give some knowledge about "Paper charge" in banks.


Answer

Assalāmu `alaikum Warahmatullāhi Wabrakatuh,

The Rs 500 paper charge is in excess of the Rs. 13,500 of which Rs. 9,000 is a loan.

Hence it will be ribā and prohibited.

You may send your other queries.

And Allah Ta'āla Knows Best,
 
Muftī Ebrahim Desai

Daruliftaa
35 Candella Rd, Durban, South Africa

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]