Should I take loan from the bank at 1% interest or be forced to pay 9% interest by failing to pay rent?
In considering whether to take a loan from a bank at 1% interest or face a 9% interest penalty for unpaid rent, it is important to reflect on the Islamic perspective regarding interest (riba). The Qur'an explicitly prohibits usury and emphasizes the importance of fair financial practices.
In Surah Al-Baqara, it is stated: Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permitteth trading and forbiddeth usury.
2:275. This verse indicates that engaging in usury is severely discouraged and has dire consequences.
Furthermore, the Prophet Muhammad ﷺ conveyed the seriousness of debt and financial obligations. He said: A poor man’s owed debt is oppression, so if anyone follows up on a debt amounting to a thousand dirhams, let him pursue it.
Sahih al-Bukhari 38:1. This highlights the burden that debt can impose on individuals, especially when it is excessive.
In light of these teachings, it may be advisable to avoid taking on any loan at interest, regardless of the rate, if it can be avoided. Instead, one might explore other options to manage financial obligations or negotiate with the landlord to find a feasible solution that does not involve incurring additional interest. Ultimately, the decision should align with the principles of justice and fairness emphasized in Islamic teachings.
Sources
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2:275 · Al-Baqara
2:275 · Muhammad Marmaduke Pickthall
ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌۭ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ ۖ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِ ۖ هُمْ فِيهَا خَٰلِدُونَ
Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permitteth trading and forbiddeth usury. He unto whom an admonition from his Lord cometh, and (he) refraineth (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returneth (to usury) - Such are rightful owners of the Fire. They will abide therein.
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Sahih al-Bukhari 38:1
Sahih al-Bukhari · Book 38, Hadith 1 · Narrated by Abu Huraira
The Prophet (ﷺ) said, 'A poor man’s owed debt is oppression, so if anyone follows up on a debt amounting to a thousand dirhams, let him pursue it.'
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