Bank Loan to Buy House in Lebanon
Fatwa No: 81265

Question

Am I able to request a loan from a bank for buying a house in a country like Lebanon?

Answer

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

 

If the loan contains any Riba (interest and/or usury), i.e. includes any interest on settlement, even though this interest is small, then this loan is forbidden as it is a sort of usury.

A Muslim must not deal with Riba as it is forbidden for him to do so, no matter where he is or what his purpose from it is. Under no circumstances, can usury be lawful to Muslims.

Allah knows best.

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