Can I use the Credit Card, if I duly pay the Bills without Paying Interest (Riba) ?

The first question of Fatwa no. 7425

Q 1: There is a card which facilitates financial transactions in Western countries, as it helps a person to do without carrying cash with them. A person can purchase any goods they want with this card, then at the end of each month they receive a bill with the sum of money they have to pay for what they bought using this card, and they pay the full amount without any increase. This process protects one’s money from being stolen. But there is a condition for receiving this card. Depending on the terms of the card, one may pay interest charges for every day of delay on the amount that they do not pay within twenty five days.

Is it permissible to deal with this card taking into account that a person can avoid dealing with Riba (usury/interest) if they pay the bill during the twenty five days grace period?

A: If the reality is as you have mentioned, then such dealing is not permissible as this contract contains Riba (usury/interest) because you stipulate paying Riba in case of delaying payment.

May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

The Permanent Committee for Scholarly Research and Ifta’

Member –  Member – Deputy Chairman – Chairman
`Abdullah ibn Qa`ud – `Abdullah ibn Ghudayyan – `Abdul-Razzaq `Afify – `Abdul-`Aziz ibn `Abdullah ibn Baz

Also Read :

Riba (Interest) – Al-Mulakhas al-Fiqhi | Shaykh Salih Fawzan – Abu Muhammad Al Maghribee [Audio|En]

Al-Mulakhas al-Fiqhi (A Summary of Islamic Jurisprudence)

This topic is covered in Volume 2 of the above Book

This is the weekly Monday evening class on the book Al-Mulakhas al-Fiqhi by Shaykh Salih al-Fawzan. We begin with the Book of Trade Transactions, Chapter 6: Riba.

You may download a copy of the original Arabic text here: الملخص الفقهي

As with all of our classes at Masjid Tawheed in Stone Mountain, GA, we encourage you to join us.  If you are not able to attend in person, please feel free to listen in via our Spreaker channel or our telelink line at 712-432-2856.

Part 01 : Listen / Download Mp3 Here (Time 43:32)

Part 02 : Listen / Download Mp3 Here (Time 40:57)

Part 03 : Listen / Download Mp3 Here (Time 46:55)

Part 04 : Listen / Download Mp3 Here (Time 57:10)

Part 05 : Listen / Download Mp3 Here (Time 47:21)

Part 06 : Listen / Download Mp3 Here (Time 45:12)

Posted from: http://followthesalaf.com/home?tag=Al-Mulakhas+Al-Fiqhi

Prohibition of taking Ar-Riba (The Usury) | Riyad-us-Saliheen

Riyāḍ uṣ-Ṣāliḥīn · Chapter 287 of 372

Prohibition of taking Ar-Riba (The Usury)

The Book of the Prohibited Actions – Chapter 287 : Ahadith 1615
Imam Abu Zakariyya Yahya ibn Sharaf an-Nawawi (d. 676 AH)

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1615

🎧 Listen to all hadiths in Arabic Ch 287 H 1615

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Allah, the Exalted says:

يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُواْ ٱتَّقُواْ ٱللَّهَ وَذَرُواْ مَا بَقِيَ مِنَ ٱلرِّبَوٰٓاْ

“Those who eat Ar-Riba (the usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say: `Trading is only like Ar-Riba, whereas Allah has permitted trading and forbidden Ar-Riba. So whosoever receives an admonition from his Rubb and stops eating Ar-Riba, shall not be punished for the past; his case is for Allah (to judge); but whoever returns (to Ar-Riba), such are the dwellers of the Fire – they will abide therein. Allah will destroy Ar-Riba and will give increase for Sadaqat (deeds of charity, alms). And Allah likes not the disbelievers, sinners. Truly, those who believe, and do deeds of righteousness, and perform As-Salat (Iqamat-As-Salat), and give Zakat, they will have their reward with their Rubb. On them shall be no fear, nor shall they grieve. O you who believe! Be afraid of Allah and give up what remains (due to you) from Ar-Riba (from now onward).”

[Al-Baqarah 2:275–279]

Ahadith on the subject are many, including Hadith No. 1615.

1615 `Abdullah bin Mas`ud (radiyallahu anhu) reported: The Messenger of Allah ﷺ cursed the one who accepts Ar-Riba (the usury) and the one who pays it.[Muslim].

The narration in At-Tirmidhi adds: And the one who records it, and the two persons who stand witness to it.

The Interesting Dream of the Prophet Sallalahu Alahi wa Sallam – Sahih Bukhari

The Dream of the Prophet Sallalahu Alaihi wa Sallam

Sahih Bukhari Volume 9, Book 87, Number 171: [Interpretation of Dreams ] : Narrated Samura bin Jundub:

Allah’s Apostle very often used to ask his companions, “Did anyone of you see a dream?” So dreams would be narrated to him by those whom Allah wished to tell.

One morning the Prophet said,

“Last night two persons came to me (in a dream) and woke me up and said to me, ‘Proceed!’

I set out with them and we came across a man Lying down, and behold, another man was standing over his head, holding a big rock. Behold, he was throwing the rock at the man’s head, injuring it. The rock rolled away and the thrower followed it and took it back. By the time he reached the man, his head returned to the normal state. The thrower then did the same as he had done before. I said to my two companions, ‘Subhan Allah! Who are these two persons?’ They said, ‘Proceed!’

So we proceeded and came to a man Lying flat on his back and another man standing over his head with an iron hook, and behold, he would put the hook in one side of the man’s mouth and tear off that side of his face to the back (of the neck) and similarly tear his nose from front to back and his eye from front to back. Then he turned to the other side of the man’s face and did just as he had done with the other side. He hardly completed this side when the other side returned to its normal state. Then he returned to it to repeat what he had done before. I said to my two companions, ‘Subhan Allah! Who are these two persons?’ They said to me, ‘Proceed!’

So we proceeded and came across something like a Tannur (a kind of baking oven, a pit usually clay-lined for baking bread).” I think the Prophet said, “In that oven there was much noise and voices.” The Prophet added, “We looked into it and found naked men and women, and behold, a flame of fire was reaching to them from underneath, and when it reached them, they cried loudly. I asked them, ‘Who are these?’ They said to me, ‘Proceed!’

And so we proceeded and came across a river.” I think he said, “…. red like blood.” The Prophet added, “And behold, in the river there was a man swimming, and on the bank there was a man who had collected many stones. Behold. while the other man was swimming, he went near him. The former opened his mouth and the latter (on the bank) threw a stone into his mouth whereupon he went swimming again. He returned and every time the performance was repeated, I asked my two companions, ‘Who are these (two) persons?’ They replied, ‘Proceed! Proceed!’

And we proceeded till we came to a man with a repulsive appearance, the most repulsive appearance, you ever saw a man having! Beside him there was a fire and he was kindling it and running around it. I asked my companions, ‘Who is this (man)?’ They said to me, ‘Proceed! Proceed!’

So we proceeded till we reached a garden of deep green dense vegetation, having all sorts of spring colors. In the midst of the garden there was a very tall man and I could hardly see his head because of his great height, and around him there were children in such a large number as I have never seen. I said to my companions, ‘Who is this?’ They replied, ‘Proceed! Proceed!’

So we proceeded till we came to a majestic huge garden, greater and better than I have ever seen! My two companions said to me, ‘Go up and I went up’ The Prophet added, “So we ascended till we reached a city built of gold and silver bricks and we went to its gate and asked (the gatekeeper) to open the gate, and it was opened and we entered the city and found in it, men with one side of their bodies as handsome as the handsomest person you have ever seen, and the other side as ugly as the ugliest person you have ever seen. My two companions ordered those men to throw themselves into the river. Behold, there was a river flowing across (the city), and its water was like milk in whiteness. Those men went and threw themselves in it and then returned to us after the ugliness (of their bodies) had disappeared and they became in the best shape.” The Prophet further added, “My two companions (angels) said to me, ‘This place is the Eden Paradise, and that is your place.’ I raised up my sight, and behold, there I saw a palace like a white cloud! My two companions said to me, ‘That (palace) is your place.’ I said to them, ‘May Allah bless you both! Let me enter it.’ They replied, ‘As for now, you will not enter it, but you shall enter it (one day)

I said to them, ‘I have seen many wonders tonight. What does all that mean which I have seen?’
They replied, ‘We will inform you:

As for the first man you came upon whose head was being injured with the rock, he is the symbol of the one who studies the Quran and then neither recites it nor acts on its orders, and sleeps, neglecting the enjoined prayers.

As for the man you came upon whose sides of mouth, nostrils and eyes were torn off from front to back, he is the symbol of the man who goes out of his house in the morning and tells so many lies that it spreads all over the world. And

those naked men and women whom you saw in a construction resembling an oven, they are the adulterers and the adulteresses;,

and the man whom you saw swimming in the river and given a stone to swallow, is the eater of usury (Riba) and

the bad looking man whom you saw near the fire kindling it and going round it, is Malik, the gatekeeper of Hell and

the tall man whom you saw in the garden, is Abraham and the children around him are those children who die with Al-Fitra (the Islamic Faith).”

The narrator added: Some Muslims asked the Prophet, “O Allah’s Apostle! What about the children of pagans?” The Prophet replied, “And also the children of pagans.”

The Prophet added, “My two companions added,

‘The men you saw half handsome and half ugly were those persons who had mixed an act that was good with another that was bad, but Allah forgave them.’”

Source:Sahih Bukhari Volume 9, Book 87, Number 171: [Interpretation of Dreams ]

The Ruling about having shares in companies and banks – The Permanent Committee

Question:

What is the ruling about having shares in companies and banks’? And is it permissible for a shareholder (in a company or a bank) to sell shares, specifically after he has become a shareholder himself, to offices dealing in buying and selling (stockbrokers)? And from that which is possible is selling them (the shares) for more than the price that the shareholder paid. So what is the ruling about the profit which the shareholder makes every year from the value of the shares bought?

Response:

Having shares in banks and companies that trade in ribaa is not permissible. And if the shareholder wants to rid himself of any ribaa in his shareholding, then he should sell his shares at market value and take the initial investment only. The rest he should give in charity, and it is not permissible for him to take anything from the profits of his shareholding or interest. However, if the shareholding was in a company which does not trade in ribaa, then it’s profits are halaal.

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sal-Allaahu `alayhe wa sallam) and his family and his companions.

The Permanent Committee for Islaamic Research and Fataawa, comprising –
Head: Shaykh ‘Abdul ‘Azeez ibn Abdullaah ibn Baaz;
Member: ‘Abdullaah ibn Ghudayyaan;
Member: Shaykh ‘Abdullaah Ibn Qu’ood
Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-‘Ilmiyyah wal-Iftaa. – Volume 13, Page 508, Fatwa No.8996

Having shares in the Islaamic Bank – The Permanent Committee

Question:

The Islaamic Bank has shares for sale and the value of each share is one hundred and ten US dollars ($110). And that which we have understood is that the bank in question does not trade in ribaa and that the money from the sale of the shares will be used in trading activities which are free from any dealings in interest. The profits will then be divided amongst the shareholders. So out of concern of falling into that which is impermissible, we request you to give a fatwa about whether this is permissible or not.

Response:

It is permissible to have shares in a bank which does not trade in ribaa, and the profits which accrue from these shares are the result of trading which is not haraam , so it is halaal.

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sal-Allaahu `alayhe wa sallam) and his family and his companions.

The Permanent Committee for Islaamic Research and Fataawa, comprising –
Head: Shaykh ‘Abdul ‘Azeez ibn Abdullaah ibn Baaz;
Member: ‘Abdullaah ibn Ghudayyaan;
Member: Shaykh ‘Abdullaah Ibn Qu’ood

Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-‘Ilmiyyah wal-Iftaa. – Volume 13, Page 507, Fatwa No.4512

Forbidden Business Transactions : Shaikh Saalih Al-Fawzaan

A Transcribed Lecture of Shaikh Saalih bin Fawzaan Al-Fawzaan
Translated by abu maryam isma’eel

[Dowload PDF of Forbidden Business Transactions in Islaam- Shaykh Fawzan- Al-Ibaanah.com]

Introduction to the Book

All praise is for Allaah and may the peace and blessings of Allaah be on His Final Messenger, his family and those who follow him in goodness until the Day of Recompense. To Proceed.

This is a translation of a small booklet entitled “Al-Buyoo’ al-Munhee ‘anhaa fil-Islaam” [Forbidden Business Transactions in Islaam] by the noble scholar of Saudi Arabia, Shaikh Saalih bin Fawzaan Al-Fawzaan, may Allaah preserve him. The original source for this book was a recording of a lecture he gave in 1411H in a masjid in Saudi Arabia . The book was chosen due to the importance of this topic amongst Muslims in the West. This is because as the number of Muslims in the lands of the West increase and the communities grow, the need for instituting Muslim-owned businesses that will support and benefit these Muslim communities also grows.And since it is not befitting for the Muslims to engage in matters without knowledge, we felt a need to present this small but informative book to our readers for the purpose of providing knowledge on those matters, which Allaah and His Messenger have warned us against and forbidden with regard to everyday business transactions. You will find that this treatise is not only intended for the businessman who buys merchandise and sells to his customers, but also for the purchasers who buy the products. The Shaikh spends much of the time focusing on several products that are forbidden to buy, sell and promote, but yet which have found their way into Muslim communities in large quantities, such as music, alcohol and cigarettes. We hope that every Muslim benefits from this book, by avoiding buying or selling those products that have been forbidden and abstaining from conducting business schemes that are against Islaam.

Ruling about life and property insurance : Ibn Baz

 Question:

What is the ruling on Insurance, wether it be life insurance or property insurance?

Answer:

Insuring one’s life and property is forbidden; it is not permissible due to the fact that Al-Gharar (Uncertainty, Risk or Speculation) and usury are involved therein. And Allah – the Almighty the All-Powerful – has forbidden all types of dealings that involver usury and dealings in which there is Al-Gharar (Uncertainty, Risk or Speculation), as a mercy for the (muslim) community and a protection for them for what is harmful to them. Allah – Most Glorified, Most High says:

“where as Allah has permitted trading and forbidden riba” (usury). Al-Baqarah 2:275

And it has been authentically reported from the Messenger of Allah (sallAllaahu ‘alayhi wa sallam) that he forbade selling AL-Gharar. And Allah is the granter of success.

Shaykh `Abdul-`Azeez Bin Baz
Fatawa Islamiyah, volume 5 / page 19

Buying goods using debit cards : The Permanent Committee

Question:

I hope your excellencies can advise us about using Saudi Net (debit) cards when buying items from stores in the following manner: When the total sale price is agreed upon, for example SR150 (riyals), the card is presented to the salesman who passes (“swipes”) it through a machine he has in the store. The (total) value of the transaction is then debited instantly by transferring the amount from the buyer’s account to the vendor’s account in the same instant, i.e. before the buyer leaves the store.

Response:

If the matter is as you describe, then there is no harm in using the mentioned card, so long as the buyer has sufficient funds in his account to cover the required amount (of the sale).

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sal-Allaahu `alayhe wa sallam) and his family and his companions.

The Permanent Committee for Islaamic Research and Fataawa, comprising –
Head: Shaykh ‘Abdul ‘Azeez Ibn Abdullaah Ibn Baaz;
Member: Shaykh ‘Abdul-‘Azeez Aal ash-Shaykh;
Member: Shaykh Saalih Ibn Fowzaan;
Member: Shaykh Bakar Ibn ‘Abdullaah Abu Zayd
Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-‘Ilmiyyah wal-Iftaa., – Volume 13, Page 527, Fatwa No.18521

Receiving Monthly Pension after Retirement from Public Sector

Q 3: What is the islamic ruling on someone who works in the public sector, although we all know that most of the money of the government is the produce of usurious dealings and alcohol selling. Is it lawful to have a government job? Civil workers seek to benefit their family from the pension they receive after he dies as no pension is provided for freelance working. We live in a country where there is no Bayt-ul-Mal (Muslim treasury).

A: There is nothing wrong in working in a non-Muslim country as long as the kind of work done does not involve disobeying or helping to disobey Allah. There is nothing wrong with you receiving your salary from the mixed treasury of the state. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

The Permanent Committee for Scholarly Research and Ifta’
Member Member Deputy Chairman Chairman
`Abdullah ibn Qa`ud `Abdullah ibn Ghudayyan `Abdul-Razzaq `Afify `Abdul-`Aziz ibn `Abdullah ibn Baz

Fatwas of the Permanent Committee>Group 1>Volume 14: Transactions 2>Chapter on lease contracts>A Muslim serving a Kafir
(Part No. 14; Page No. 479)
The third question of Fatwa no. 5488

—

Regarding the asl of pention

Q 1: I was enrolled in the Egyptian Armed Forces as a volunteer from September 1967 A.D. till January of 1981 A.D., and served in the Army for approximately thirteen years. They used to deduct part of my monthly salary to cover insurance and pensions. This was obligatory. After Allah guided me to understand Islam, I resigned, and thanks to Allah, my resignation was accepted. However, they started paying me 56.54 pounds as a monthly pension. A brother told me that the money of this pension is Riba (usury) and that I must refuse it. Is this correct? What is the correct ruling concerning this pension?

A: If the reality is as you mentioned, it is permissible for you to take the retirement pension as it is a reward for the period you served in the government.

May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

The Permanent Committee for Scholarly Research and Ifta’
Member Member Deputy Chairman Chairman
`Abdullah ibn Qa`ud `Abdullah ibn Ghudayyan `Abdul-Razzaq `Afify `Abdul-`Aziz ibn `Abdullah ibn Baz

Fatwas of the Permanent Committee>Group 1>Volume 23: Oaths>Vows>Imamate>Rulership and Al-Siyasah Al-Shar`iyyah>Retirement pension
The first question of Fatwa no. 7121

A new convert paying to the bank its dues before entering Islam – Permanent Committee

Q: The submitter says he has recently converted to Islam. He had bought a house before he converted to Islam through a transaction widely prevailing in the West. To clarify, he paid a certain amount of the price in advance and borrowed the remainder on credit. Knowing that a Muslim may not pay or receive interest, he inquires about the ruling on interest that he has to pay for that loan.

A: If the reality is as you have mentioned, the person in question should submit his new status to the authority from which he took the loan asking it to take back only the capital, i.e. without interest, as interest is prohibited according to Islam. Doing so is more precautionary and frees him from accountability for paying the usurious interest. If the borrowing authority approves of it, it will be alright, praise be to Allah. Otherwise, he will have to pay the interest stipulated in the contract he had signed before converting to Islam.

May Allah grant us success! May peace and blessings be upon our Prophet Muhammad, his family, and Companions!

Permanent Committee for Scholarly Research and Ifta’

Member     Member     Deputy Chairman     Chairman
`Abdullah ibn Qa`ud     `Abdullah ibn Ghudayyan     `Abdul-Razzaq `Afify     `Abdul-`Aziz ibn `Abdullah ibn Baz

Making Ribaa (interest) permissible in the west – Shaykh Ahmed al-Wasaabee

Shaykh Ahmed al-Wasaabee warns us of evil callers who make ribaa “halal,” evil callers such as Qaradaawe, Siraaj Wahhaaj

Question to Shaykh Ahmed al-Wasaabee: Some youth try to tell us that ribaa (interest) in the west is permissible. And they attribute this to al-Qaradaawee. So what is the ruling on the one who follows these types of rulings? And other people in the west have made similar statements, such as Siraaj Wahhaaj, and others like him. This is a very common thing, as many youth say that ribaa is permissible in the west because of necessity (i.e. you cannot purchase a house without a mortgage, and if you do not purchase a house, the Muslims will be in a state of weakness!, etc.).

Ruling on medical insurance made by institutions and companies on the employees and their families – alifta

– Issued by the Permanent Committee

Q: Some private companies and businesses offer medical insurance to their employees and their families. To provide this service, they make an agreement with some private hospitals. This agreement is as follows:

1- The company pays the hospital a fixed monthly amount of 100 Riyals for each employee, regardless of the number of times they visit the hospital to have treatment.

2- The hospital is responsible to treat the employees, giving them the necessary medications and performing surgery for them when necessary. It is important to mention that the hospital spends more than 100 Riyals some months on treating an employee, especially when the person has an operation.

At other times, an employee may not visit the hospital at all and thus, does not benefit from the 100 Riyals or he may benefit only from a small amount. The question now is: First, is this type of medical insurance permissible or does it involve uncertainty and deception?

Second, does this kind of insurance fall under the permissible Ji’alah (payment for a permanent job, not a fief) as some researchers have said (i.e., Majallat Al-Buhuth Al-Fiqhiyyah Al-Mu`asirah, “Contemporary Jurisprudence Research Journal”, issue no. 31)? Third, what are the characteristics of a lawful cooperative medical insurance?

A: The transaction mentioned in the question falls under the category of prohibited commercial insurance, which involves uncertainty, deception and devouring people’s money falsely. The permissible cooperative medical insurance is to establish a charity fund that is paid to help the needy and sick people without the donor expecting any financial benefit from it. Giving the money to the fund should only aim at helping the needy, and hoping for the Reward of Allah (Exalted be He). May Allah grant us success! May peace and blessings be upon our Prophet Muhammad, his family, and Companions!

Permanent Committee for Scholarly Research and Ifta’
[Issued by the Permanent Committee, Fatwa no. 19399]

Buying Shares in Companies which Deals with Riba (interest) – Shaykh Muhammad ibn Saalih al-‘Uthaymeen

Shaykh Muhammad ibn Saalih al-‘Uthaymeen (may Allaah have mercy on him) was asked about the ruling on buying shares in companies.

He replied:

Buying shares in companies is subject to further discussion, because we have heard that they put their money in foreign banks, or quasi-foreign banks, and take interest on it, which is a kind of riba. If this is true then buying shares in them is haraam and is a major sin, because riba is one of the worst of major sins. But if it is free of this then buying shares is halaal, so long as there is nothing else involved that is haraam according to sharee’ah. End quote.

Majmoo’ Fataawa Ibn ‘Uthaymeen (18/question no. 119).

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Don’t miss to read the below interesting analysis : (excerpted from the net)