hanbali fiqh – zero percent interest loan

Q: On hanbali fiqh  I got a zero percent interest loan for 2 years. would it be permissible to opt for such a loan? Some local scholars i discussed with a while back in XXXX (location name withheld) have made it clear that a riba contract is haram. So how would you rule? Can u give me an explaed answer. Thnak you

Time: Sunday February 21, 2010 at 5:31 am

A: There are multiple things that must first be observed:

  • At the time of taking out the loan you must have the ability to pay back the loan without defaulting upon it within the given interim (i.e. 2 years)
  • At the time of taking out the loan you must have a firm determination and have also taken the necessary precaution to ensure payment of this loan within the stipulated time period without it incurring interest
  • At the time of taking out the loan, you are honest with relation to your ability to pay.

The above criteria would make your loan permissible

Allah Certainly Knows Best.

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4 responses to “hanbali fiqh – zero percent interest loan

  1. Assalam Alaikum
    Whats the hanafi ruling on this? Sometimes opting out of a loan is extremely difficult especially for graduate school. What if one knows they cannot pay right away and would like to use the two years with 0% interest rate as a time period to slowly pay off the debt? The majority of the people don’t have, for example, $10,000 to pay tuition per semester. I understand we should try to get scholarships and save up some money for grad school, but realistically speaking it is hard to save up somewhere from $50,000 to $150,000 with undergraduate degrees. Also, one would be very lucky to find a 0% interest rate loan. What is one suppose to do in such a situation as to avoid riba?
    JAK

  2. Pingback: so why must the ahnaf get left out on zero % interest « Islam In Action