He purchased a piece of agricultural land by Ribaa, will its produce be unlawful?
Fatwa No: 9147

Question

A father purchased a piece of agricultural land by a bank loan. Will the produce of the land be unlawful, noting that the loan is based on Ribaa? If yes, are the children considered consumers of Ribaa like their father?

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu 'alyhi wa sallam, is His slave and Messenger.

 

If your father is still liable to pay any portion of the capital of this Ribaa-based loan, then he must settle it, and then repent sincerely to Allaah, and avoid doing it again. If he is not liable to pay anything of the capital, then he must repent as well, because he has committed a great sin.

 

On the other hand, it is permissible to benefit from the product of the land that was purchased with a Ribaa-based loan, for after it is received, the loan becomes the debtor’s possession and also a debt for which he is liable. This applies to the loan whether or not it is based on Ribaa, but the difference is that one bears a sin when he takes a Ribaa-based loan for dealing in Ribaa.

 

Allaah Knows best.

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