Assalamualaikum wa rehmatullah,
Long back we had business crisis and for that my father had taken bank loan and that bank charges some amount of interest. A said amount of money has to be paid to the bank monthly for 10 years with interest. A few years has passed already and due to the will of Allah my father died in a car accident, and now my brother is paying on his behalf. Before his death, my father asked forgiveness for the interest that he was paying and promised not to do it again.He was drawn towards Allah and increased his religious duties before his end. A few relatives tells us they wouldn't eat and drink at our place because we are paying interest, they are considering it haram. I know Allah swt is Raheem and belief that it isn't Haram as it was taken at the time of crisis and he also asked for forgiveness and made sure not to do it again. Could you please tell me if they are being too extreme or are they right? Is it Haram for them to eat at our place?
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.
Borrowing money with Riba (interest and/or usury) is a grave major sin, and it is not permissible to resort to it except in case of necessity.
If your father had borrowed money for a necessity, then he is not sinful.
In any case, your father has passed away and we ask Allah to forgive him.
As far as you are concerned, it is not permissible for you to pay interests unless you are forced to do so, in which case you will not be sinful.
However, in case you are able to refrain from paying interests [without any consequences], then you must refrain from paying them. The bank is only entitled to its capital money.
As for your relatives refraining from eating and drinking in your home because you are paying your father's loan and them considering it to be forbidden, then this is wrong. Rather, it is permissible for them to visit you, honor your invitation, and eat from your food.
For more benefit, please refer to Fatwa 384670.
Allah knows best.
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