Question:

I am writing this e-mail, hoping that you will answer my concern regarding an issue that has taken away my peace of mind. I recently bought a car. I mean financed thru a bank that is interest based bank. At a time, I didn’t have enough money to buy this car, and I was in need of a car so that I can go work, support my family and myself. I know in Islam, interest is not only discouraged, but is a great sin, but I heard under certain circumstances, there are times, it can be permissible, Allah knows. I am confused, as to what I have to do. Please advise me.

Fatwa:

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.

If you borrowed the money with Riba (interest/usury) because of being in a state of necessity for buying this car, then you are permitted to do so because necessities render forbidden matters permissible, as Allah says (what means): {… while He has explained in detail to you what He has forbidden you, excepting that to which you are compelled.} [Quran 6:119].

However, if you got this loan while you were not in a state of necessity, then you are sinful and you must repent to Allah and not return to this again.

As regards the profit resulting from the car which is bought with a Riba-based loan, it is lawful if the car is used in a lawful work.

In other words, it is permissible for you to benefit from this car because once the loan is possessed by the person; it becomes a debt on him which he must repay; this applies to a loan with Riba or any other loan, but a person is sinful for getting a loan with Riba.

Allah Knows best.

Fatwa answered by: The Fatwa Center at Islamweb