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  1. This is A Great Article, But Can You Soon Post The islamic Banking Vs Conventional Banking and Growth of Islamic Banking,Beneficial for Our Economy Too and That How People Should Turn to the Islamic instead Conventional With the Qur’an And Hadith Reference? Wait for The Reply. JazakAllah.

  2. MashaALLAh great article! We all need to keep reminding ourselves of such Haram activities and try to keep away from all such sins that will only cause depression and plunder our life and the happiness! May ALLAH azzawajal set us on the right path! aameen!! summa aameen!

  3. Asalaamu Alaikum

    Although I totally agree with this there are times when people fall through the cracks. Take our family. We rented for so many years but after awhile no one would rent to us because our family is too big according to them (10 kids). We tried to get a halal loan but they wanted 20% down. since we couldn’t afford that we ended up getting a non-halal loan for 5%. We are not happy living this way but what can you do? Muslims are not interested in helping us either. Our kids though have never taken riba loans for post-secondary education. They work to pay their tuition. they started out young with newspaper jobs and then got part-time jobs. It can be done. but for the housing situation I don’t know what to do. If you have advice I’m all ears.

    • wa aleikum assalam

      I have read before, someone was asking similar from a sheykh, and he said in their case, they have no other choice then to take to loan. I think in such a situation one should always ask an scholar of islam, because in case of neccesity the haram can become halal. But really ask a scholar and make istikhara prayer

  4. salam, how about some loan using a concept of ‘UJRAH’ or in other word, its call “service charge in their payment? its that Halal?

  5. Although currently the complete economy is haram and very Shaitanic, as economy is also not needed to live good, but still most countries make it a must to have to do something with the economy.

    But fixed mortgages can be halal. As if the Bank if halal that sells you the house as intermediate, is requesting a fixed price on what the house costs. As they have bought the house and are selling to you the house with a little bit of gain. Like a milk that’s bought by the supermarkt from the farmer and sells it to you. Only a little constraint comes in how you pay for the house and if you can’t pay anymore. But making something fixed for it, will make it halal, best thing is that the buyer will get share from the house when it’s sold. Like buying stake in a house.

    Urge all muslims to repent from interest on money immediately and watch out, as Allah has stated in verse 2:279 that war is waged on them who do not repent from it, by Allah and the Prophets.

  6. Asalamu alaikum. In new york k it’s almost impossible to buy. A home cash unless you are rich. I love Allah subhannah abd don’t want. To sin but in fortunately muslims have nothing for us exept telling us it’s haram. Not helping us help ourselves not to sin or fall in riba. Should also be haram. Haram haram no help no help. Renting is money not invested in mself. It goes to the landlord wo onturn benefiting from my money and payng off his own ouse and I’m paying his interest foe him. La hawla wala 9ouwa illa billah. I will not do mortgage because our shouyoukh tells us not to and and i leave it to Allah. But. It is realy cowardly that we have rich muslim contries driving ferraries and don’t even help muslims grow.

    • In a none bank dominatednone world economy, millions of Muslims deposit lots of their money, interest free, the none Muslim uses that money to their benefit, the money loses it’s value over time, please tell me who benefits? The Muslim? Is everything clear cut as people like to think or do we need fresh thinking in accordance with the quran.

    • Wa Salam.. Its a test from Allah. Allah says in Quran 29:1 and 29:2 Do people think that they will be left alone because they say: “We believe,” and will not be tested. And We indeed tested those who were before them. And Allâh will certainly make (it) known (the truth of) those who are true, and will certainly make (it) known (the falsehood of) those who are liars, (although Allâh knows all that before putting them to test).
      I agree that muslims in todays world espacially the OIL RICH nation not doing anything to solve this problem rather putting their money in US banks to increase this problem.
      Insha Allah we should be little bit more patient with the decree of Allah and keep avoiding big sins until we reach certainity (Death).

  7. I want to go to University here in the UK, But the tuition fees here is way too much about £27,000 for 3 years. As the new system in student loans contains Interest, i am having to look for other options after my A-level studies.

    • Abidul – The best thing for you would be to take a gap year and find a full time job. It will help you to save the money espacially if you are living with your parents. Alternatively you may wish to find some alternative unis that offer the subjects of your interest lot cheaper. I live in Uk too and (£27,000 + added interest) is lot of money to payback if i have to borrow for my studies.. Think wisely and priortize the eternal stay in the hearafter .. May Allah help us all .. Ameen

    • We need more study as current banking system is not the same during the time of Pre Islamic era which exploit people & need to pay compound interest without borrower interfere & agreement all is
      borrower say….We need some more scholarly study to open the mind on Muslim Ummah & guide them rightly in this world & hereafter.So that we can flourish ……………

  8. How about products? From normal stores like Gap clothing or Clarks shoes, because as businesses surely they are at least partly financed by loans. So then, what becomes of buying from them? Is that aspect exempt? Should we only buy from Islamically financed businesses?

    • @Nadine – Thank you very much for your question. It is quite specific and I’m afraid out of our area of expertise. It would be best to consult an Islamic scholar of fiqh (jurisprudence) for it. In case you do not know of any in person, you could refer to authentic fiqh Q&A websites, such as: http://islam-qa.info

      I hope this helps.

  9. Salaam brothers and sisters

    I live in new York its impossible to buy anything cash over here I’m also living and paying high rent to the landlord for a one bedroom apt I also have a growing family but like my fellow brothers I do t want to engage in riba, but sometimes I feel like I may not have a choice their is no affordable housing either is their any kind of riba free loans.

    • Ajaz – Wa Salam.. I am in a similar situation as you are. Most of the muslims i know enjoying the Riba benefits and living in a nice 3 bed house and doing a business from loan based money from the conventional banks. I know many Hajis who used to do taxis when they came in the country but now living luxury life ONLY because of RIBA. It is quite normal to feel let down. But remember Allah knows what we are going through and inshAllah the money we are paying towards rent would not go down the drain( as everyone says this) but Allah will reward this money towards charity. Insha Allah. You should realize the fact that at least you are doing something different to please Allah(swt).

      Click to read more: http://productivemuslim.com/how-can-we-avoid-riba/#ixzz3Dgcdc032
      Follow us: @AbuProductive on Twitter | ProductiveMuslim on Facebook

  10. If rent is the solution, what about when we r retired N have no more earnings. Or fall sick n can’t work anymore
    How to rent a house then.. All years of paying rent not buying a house leaving me with nothing at the end when I can’t earn anymore.. That’s a disturbing thought

    • Assalaamu alaikum Sr. Sumayya,

      It’s mainly about understanding the gravity of riba in Islam and using the means to avoid it, which includes planning in advance. It one would like to own a house – especially for retirement age, it would be best to save up for it / take halal loans during one’s employment and re-pay them then.

      With the above said, every situation is different and we do not have the expertise to advise in detail on this matter as we​ are not equipped in fiqh​-related​ (jurispruden​tial​) issues. If you’d like detailed advice, I advise you to consult a​n​ authentic scholar of Islamic jurisprudence who’d best be able to answer your questions.

      ​In case you may not know of one, you may alternatively ​consult ​authentic fiqh Q&A websites​ such as​:

      http://MuftiSays.com ​​
      http://islamqa.info/en
      http://AskImam.com

      ​I truly hope this helps. Our sincerest apologies for being unable to assist you further.

      • Please let me know which companies you know provide halal mortgage loans in USA? The companies I checked don’t want to take any responsibility for losses. I think, the halal loan providers should obey the Islamic rules like sharing profits and losses. So far I checked, the halal loan providers don’t want to share any losses. So, are these loans really halal?

        Salaam,
        Abdur Razzak

  11. Asalamualaikum! I have repented from giving interest on a house I once owned, which is now sold. Banks have given me interest in the past, which I hav taken without thinking about. Shud we give the back any interest that has been given to us? What if we don’t know how much we have been given?

    • Dear Sis, I congratulate you to take such a huge step to sell your haram house. It really needs a higer level of iman which Allah has granted you MashAllah. The best thing for you is repent from Allah and ask forgiveness of your past ignorance, do help your poor members of family and friends if any, or give regular share of money from your salary to poor. In sha Allah (SWT) will convert your sin of riba into good deeds.

  12. Very informative acticle by bro Zahir Abdul Latheef. I really think that muslims espacially living in the west have a wonderful opportunity to please Allah(swt) by avoiding interest.
    Espacially when you see your muslim relatives living in haram houses and doing business on interest based loan it makes you feel content that you are at least doing something different to please Allah(swt).

  13. Masha`Allah very nice article ,its good to increase your Taqwa .Alhumdolilah ,I always kept myself & my family away from Riba even though many people discuss about benefit of Riba in non muslim country & so on .I always keep away from Riba .Alhumdolilah we flourished very much & our life is very much blessed without Riba which I might not be if I took Riba……

  14. Can the brother please write an article on Muslims working in financial institutions (banks, asset management etc) There is nothing on the web. Jazakala

    • @Luqmaan – That’s a great topic; however, because it may not fall under our theme of productivity, it may be a good idea to contact the author directly and suggest he write about it. You can try contacting the author through his blog (see his bio above; leave a comment on his blog) and he’ll hopefully get in touch, inshaAllah.

      I would’ve reached out to him for you, but this article is quite an old submission and I’m afraid we no longer have the author’s email address.

  15. Aselamu aleykum werah metulahe weberekathu I’m selling goose in the shope for some one, i work 6 days 58 hours a week and my salary £200 my boss some of things he told me to sell them cheap and some times when customers asking the prise anything i told them they buy it but i never put that money in my pocket,but now things become difficult my husband he is in debt we canot afford to pay for rent now I’m thinking when i sell goose to increase the price and take the money is it haram??

  16. I’m in college right now andi didn’t take out an interest loan but financial aid comes with a lien and ifi finish school I have to pay it but if I leave note I would still have to

  17. Assalamualaikum,

    I agree with you and others on the comments. Life without Riba is indeed difficult. It needs lot of faith everything going to be alright in the future..

    However, I’m disagree with your point #3 Choosing halal investments (for example gold rather than the stock market)
    I don’t think stock market is haram as it is an investment whereby there is underlying real economic activity. Of course you have to be careful on which company you buy and what is your investment strategy. However, you maybe have some points on your view why stock market is haram and please do share with me.

    Thank you and keep up the good work.

  18. Assalam Alaikum,

    Can you please shed some thought on buying a car in USA? I am in dire need of a car and planning to get a low milage used car, but i don’t have the full amount say around 18K-20K to pay upfront. i can pay upto 7K upfront. Is single pay lease an option where i can pay the entire lease amount upfront to avoid any penalty on delay monthly payment. Is this Halal?

    JazakAllah Khair.

  19. Just an idea to avoid riba:

    a small group of business men and accountants teamed up to collect info on “halal investors, mainly who have worked for years, say in their 50’s or 60’s” who are looking for income in their retirement. Group also collects info on young families needing halal loans to buy home”for which they will give part-ownership of house. Young family buys home with limited saving and loan from older families. Young family now pays “partial rent” to older family until loan amount is paid off. This fulfills need of young family to get a halal loan and also, gets income for older family an income in retirement. Key is to form a local group of advisers who will advise both investors and home loan borrowers…

  20. Aslm borther and sisters!

    In relation to riba I have the following questions. I currently live in Sweden and have a family of two kids and a wife. Currently we live in a rented apartment. However, as the children grow and family may grow too (smile) we see that we need a bigger place. To rent a bigger place is not an issue since the supply for apartments is really low in Sweden. In other words, people stand in queues for at least 5 years and in big cities like Stockholm one should wait at least 10 years to get an apartment to rent.
    Given this situation, the only solution for us would be to buy a house or apartment where we would potentially “win the war” with other bidders by putting the highest bid.
    Could you please guide me what is the best thing to do in this case so we do things in the proper way as Allah wants? I would greatly appreciate your comments and suggestions.

  21. Can a distinction be made between recieving riba and giving riba, do you think?
    As Muslims we are not obliged to recieve riba but due to necessity we may be obliged to give riba (without a doubt it is haram) just as we are obliged to take out insurance on a car, even though it is also haraam.
    I pray thàt we can be free ourselves from riba. There should be an organisation set up to help Muslims reduce their debt, offering interest free loans. Infact should not zakat money be used to help this cause?

  22. Salam alayKum..
    Have subscribed to the newsletter before, but the mail I got doesn’t contain the link to confirm my email. Right now, av subscribed but haven’t seen any confirmation link from you.. Pls kindly help me look to it.
    Jazakallahu khayran for all your gOod post

  23. Decent article. However, I want to make a few points on your recommendations:

    Renting does not work well in the UK. The UK is a hot spot for landlords who are renting away their property at an even increasing price. I personally know landlord who are increasing their rent every year, how are brother and sisters able to afford that?…on average in the UK a family moves to a different property every 16 months due to contract not being renewed, prices going up/other reasons. Constantly moving away is a hassle, costly and also disrupts families; changing Islamic schools, work location/travel etc. – renting is insecure and problematic.

    you also mention someone can save. How about the many that cant save (a big amount) or dont have 300k under their mattress?

    please done mention ‘Islamic bank’ in the west. We all know either they are a ripp off (only for the wealthy) or no Islamic at all (according to some scholars/sheikhs).

    you also state that:

    ‘isn’t it strange how a Muslim will strictly stay away from eating pork because it is haram, yet the same person has no problem devouring riba (otherwise known as usury or interest)?’

    it is much easier to stay away from pork….you have halal food places at every step these days. However, their is no halal mortgage available (some are ripp off, or for the wealthy or not even Islamic in first place). Many end up buying a house to live it to provide shelter to their family, their options are literally non existent.

    In no way or form am I trying to justify Riba, as its clearly a major sin. All im trying to state is that its important to understand the context of the community living in the west.

  24. Assalamualaikum.
    How can a government employee deal with situations like tax saving etc. I mean we the middle class govt. employees in India have to pay hefty taxes from our salaries if we do not go for tax saving schemes like for example the postal life insurance policies and other insurance policies. Also, what about health insurance. Also, education is privatised and expensive in India , I mean the govt. Schools are not even satisfactory. So, can you suggest how can we do savings for our kids schooling and also higher studies ( which is becoming expensive day by day). Also, does Kashmir ( I am sure most Muslims have some idea of what the people of Kashmir are facing) fall into the daul Harb.