Taking a loan with interest to help relative pay tough debt
Fatwa No: 245596

  • Fatwa Date:10-4-2014 - Jumaadaa Al-Aakhir 10, 1435
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Question

Assalamu Alaikum, A close Muslim relative of mine is in severe financial hardship. He works hard, but has a large family and has had to borrow considerable amounts of money (without interest) from people to cover his family's expenses. But now he cannot repay his debt and might possibly go to jail as a result. I am a student in the United States and entitled to take out federal loans (with interest). Is it permissible for me to take out such loans to give it to this relative so he may pay off his debt? I have exhausted all possible avenues in search of loans without interest, but unfortunately couldn't find any. I would give it to him without asking for repayment and would make the loan payments myself inshaa Allah. Jazakom Allaho Khayran.

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  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

It is impermissible for you to take out a loan with Riba (interest) in order to help your relative in his difficulty. It is not permissible to resort to borrowing with Riba except in cases of dire necessity when it is permissible to commit what is forbidden. Allaah says (what means): {But whoever is forced [by necessity], neither desiring [it] nor transgressing [its limit], there is no sin upon him}[Quran 2:173]

There is no necessity in what you have mentioned. Please refer to Fataawa 121302 and 120569.

The creditors should give respite to your relative until he is able to pay as ordered by Allaah; Allaah says (what means): {And if someone is in hardship, then [let there be] postponement until [a time of] ease...}[Quran 2:280]

Also, it is permissible to give him Zakah to pay his debt with it. He may contact charity organizations and generous people to help him in his hardship.

On the other hand, he should not forget to recite the supplication of having one’s debt paid as in the Hadeeth that was reported by Abu Daawood: Abu Sa’eed Al-Khudri  may  Allaah  be  pleased  with  him narrated that the Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) entered the Masjid one day and found a man from the Ansaar called Abu Umaamah. So he said to him: “Abu Umaamah, why are you sitting in the Masjid when it is not the time for prayer?” Abu Umaamah replied: “It is the worries and debts, O Messenger of Allaah.” The Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) said: "Shall I not teach you some words if you say them Allaah will take your worries away and help you repay your debts?" Abu Umaamah said: “Please do, O Messenger of of Allaah.” The Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) said: "Say in the morning and in the evening, 'O Allaah, I seek refuge in You from anxiety and sorrow, and I seek refuge in You from weakness and idleness, and I seek refuge in You from miserliness and cowardice, and I seek refuge in You from the burden of debts and from being overpowered by men." Abu Umaamah  may  Allaah  be  pleased  with  him said: 'I did so (said the supplication) and Allaah took my worries away and helped me repay my debts.”

Allaah Knows best.

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