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FatwaKelantanTransactions & Finance

FATWA MENGENAI HUTANG SI MATI ATAS PINJAMAN WANG DARI PIHAK KERAJAAN ATAU MAJIKAN ATAU INSTITUSI KEWANGAN UNTUK MEMBINA ATAU MEMBELI RUMAH ATAU KENDERAAN

What is the ruling on taking a loan to build or buy a house or vehicle, and who bears the debt if the borrower dies?

Short answer

A loan for one's own residence and one's own vehicle is permissible as a basic necessity, provided the amount is moderate according to the borrower's standard of living.

KelantanFatwa committee decision

A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.

Authority
Kelantan State Mufti Department
Status
Fatwa committee decision
Series
Fatwa Tidak Diwartakan: Sosial/Syariah
Topic
Transactions & Finance

No evidence of gazettement in the source — this is not a gazetted fatwa.

Summary

A loan for one's own residence and one's own vehicle is permissible as a basic necessity, provided the amount is moderate according to the borrower's standard of living. Otherwise it is forbidden. If the borrower dies before settling the debt and held the insurance cover required by the lender, the borrower no longer bears the debt. Where a choice of policy is given, the borrower must take insurance that is valid under Islamic law, such as Takaful.

Written in our own words from the original fatwa — check the source before acting on it.

Bahawa pinjaman wang yang dibuat bagi memenuhi keperluan asasi iaitu rumah kediaman sendiri dan kenderaan untuk kegunaan sendiri hukumnya harus kerana ianya termasuk dalam perkara dharuriat, dengan syarat ianya sederhana sahaja menurut taraf hidup si peminjam.

Excerpt from the original fatwa · Kelantan

Read the full fatwa on the Kelantan website (new tab)

How to cite

Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.

Kelantan State Mufti Department. “FATWA MENGENAI HUTANG SI MATI ATAS PINJAMAN WANG DARI PIHAK KERAJAAN ATAU MAJIKAN ATAU INSTITUSI KEWANGAN UNTUK MEMBINA ATAU MEMBELI RUMAH ATAU KENDERAAN”, date not stated. https://mufti.kelantan.gov.my/index.php?view=article&id=41:fatwa-mengenai-hutang-si-mati-atas-pinjaman-wang-dari-pihak-kerajaan-atau-majikan-atau-institusi-kewangan-untuk-membina-atau-membeli-rumah-atau-kenderaan&catid=56. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-deceased-debt-house-vehicle-loan/