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Fatwa CenterBank charges heavy penalty if interest loan withdrawn
Question
Assalam U Alaikum Mufti Sb,My question is regarding bank loan, i am working in UAE, i took loan from bank without any solid reason as at that time some of my friends were taking loan and they insisted me to apply too and convinced me that i can use this money to buy some property as it is difficult to collect so big ammount due to our self made expenditures. Any how i took loan just to have big amount one time in my account and half of my salary is going in loan installments. I didnt read about the Ribah prohibition in Islam that time because it happen so fast or Shaitan betrayed me. I took this money and transfered to my Pak account and have to pay one lac conversion charges. Once i took this amount i started learning about Islamic Views about bank loan, I am totally disturbed and can not live with this Sin as my brought up and all my earning is from Halal means ,alhumdulilah.Its almost 03 month and three loan installments already paid from my salary. I have that loam money still in my account, What is Your Valueable opinion in this case i should convert again to UAE dirham and pay loan closure penlty to bank and close this issue, All this give me loss of about six Lac Pak rupees ( +/- 20000 Dirhams)or i can use this loan money to buy property if there is any Islamic relaxation becuse I was unaware of the detailed study of Bank loan probition in islam and My Niyat was just to collect money in advance and give back in installment to bank without thinking about any Ribah.Waiting anxiously for your fatwa.Thanks,Faisal
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, is His slave and Messenger.
Riba is among the major sins, but since you took the loan not knowing that Riba is prohibited, then we hope that this is a sound excuse. You should make the intention not to do so again and seek the forgiveness of Allaah for your negligence in learning the obligatory matters of your religion.
You must only repay the original capital without interest as it is not permissible to pay the interest voluntarily unless you are compelled to do so. Please refer to Fataawa 84434 and 81346.
If you would avoid the interest by paying the loan immediately, and you are able to repay it without causing severe harm to yourself, then you should hurry to repay the loan. But if the interest is not canceled by early repayment of the loan, then do not hurry to repay it.
Since the repayment and transfer of the sum will cause losses to your money which are difficult for you to sustain, then you are not obliged to do so. Furthermore, the fact that the loan is forbidden does not mean that the money itself is forbidden, and therefore, it is permissible to use the loaned money to purchase property or anything else. For more benefit, kindly refer to Fatwa 93774.
Allaah Knows best.
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