“Legalizing” Riba – Nothing new

Kufi by Lutfi

According to press reports, the Azhar University in Cairo, Egypt has issued a ‘fatwa’ (sic) declaring the permissibility of fixed interest. o­ne such report says:

“Islam’s highest authority, the Al-Azhar Institute in Cairo, has given a green light to fixed banking interest in Egypt.”

“Sabar Talaab, the head of the secretariat, said o­n Sunday that Al-Azhar’s Islamic theological research committee had reached the verdict o­n October 31.”

“Religious jurisprudence means change and it is illogical to remain frozen while the world changes around us,” said Talaab.”

Should he take a riba-based loan in order to buy a house

We are Palestinians living in the land that was occupied in 1948. We take out mortgages from the housing ministry for a 25-year period, part of which is a gift and the other part is to be paid off in monthly installments with interest (riba). If the borrower delays paying back for one year, the ministry is entitled to take the house and sell it to someone else. There is another condition in the loan contract which states that in the event of the death of one of the spouses who signed the loan, the other is let off from paying installments and the ministry has no right to demand repayment of the loan; the house will belong fully to him or her without any further debt. What is the Islamic ruling on such loans, knowing that if a person builds a house without taking such a loan he will be asked too many questions about where he got the cash from.