FatwaFederal TerritoriesTransactions & Finance
AL-KAFI #725 : KENAPA MASIH ADA “INTEREST” DALAM PEMBIAYAAN RUMAH PATUH SYARIAH?
Is buying a house with a conventional bank loan involving interest (riba) permissible, and why do Islamic home financing products still charge fees?
Short answer
Dealing in riba is forbidden based on the Quran and hadith, so Muslims should avoid both giving and receiving it.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Federal Territories Mufti Office
- Date
- Status
- Opinion (irsyad)
- Series
- Al-Kafi li al-Fatawi
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
Dealing in riba is forbidden based on the Quran and hadith, so Muslims should avoid both giving and receiving it. Conventional banks use a loan contract that earns profit from interest, which Islamic law prohibits. Islamic banks use contracts such as Bai' Bithaman Ajil or Musyarakah Mutanaqisah, with profit coming from sale or lease. Charges still apply because Islamic banks are profit-oriented, have investors and staff, and bear operating costs, while offering only products and contracts permitted by Islamic law.
Written in our own words from the original fatwa — check the source before acting on it.
Merujuk kepada persoalan di atas, hukum bermuamalah dengan riba' ini adalah haram berdasarkan nas-nas di atas.
Read the full fatwa on the Federal Territories website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Federal Territories Mufti Office. “AL-KAFI #725 : KENAPA MASIH ADA “INTEREST” DALAM PEMBIAYAAN RUMAH PATUH SYARIAH?”, 9 April 2018. https://muftiwp.gov.my/ms/artikel/al-kafi-li-al-fatawi/2364-al-kafi-725-kenapa-masih-ada-interest-dalam-pembiayaan-rumah-patuh-syariah. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/why-islamic-home-financing-still-has-interest/