Question (Q-86)
I have been advised that based on our being in a non Islamic country and our borrowing from a non Islamic bank, taking interest based loans is permissible in light of Hadīth. Is it thus permissible to take interest based loans from the famous high street banks? Most of these banks are public limited companies and therefore most will have Muslims amongst their shareholders. If there are private companies or individuals in which ownership is only of non Muslims then will taking an interest based loan from them be permissible?
Answer:
In the absence of necessity, it is impermissible to give interest and thus benefit a non Muslim in Dārul Harb. 1
Ribā (usury) is certainly and absolutely forbidden (Harām) regardless of whether the transaction is taking place between a Muslim or a non Muslim. However, there are certain prerequisites in order for Ribā (usury) to occur. Amongst these is the condition that both sides of the transaction be safeguarded according to Islamic Law (‘Ismat ul Badalain). This condition of both sides of a transaction being protected by Islamic Law is not found in Dārul Harb. 2 If there is a Muslim shareholder of the bank or company as is the case predominantly with banks and public limited companies then taking interest based loans from such companies without dire necessity is categorically impermissible as it is Ribā (usury).
It is stated in Badā’i us Sanā’i,
إذا دخل مسلم أو ذمي دار الحرب بأمان ، فعاقد حربيا عقد الربا أو غيره من العقود الفاسدة في حكم الإسلام جاز عند أبي حنيفة ، ومحمد – رحمهما الله
“When a Muslim or a Dhimmī non Muslim (one who resides in a Muslim country with protection) enters Darul Harb safely and enters into an interest based agreement with a disbeliever from Dārul Harb or other such transactions that are void according to Islamic Law then this is permissible according to Al Imām Abū Hanīfah and Al Imām Muhammad (Allah shower mercy upon them both).”
It is stated in Al Hidāyah,
ولنا قوله عليه الصلاة والسلام لا ربا بين المسلم والحربي فى دار الحرب
“Our proof is the statement of the Prophet (peace and salutations upon him) that there is no usury between the Muslim and the disbeliever who resides in Dārul Harb.”
It is stated in Al Fatāwā Ar Ridhwiyyah, Volume 17, Page 316,
“Allah forbid, our Noble Scholars (Allah be pleased with them) never classed Ribā to be permissible in any situation. This is mere slander carried out by those who do not follow any school of jurisprudence. Rather, in the circumstances where the ruling of permissibility is given, this is due to the fact that there is no Ribā in those situations.”
On the same page in Al Fatāwā Ar Ridhwiyyah as quoted above, Al Imām Ahmad Ridhā Khān (Allah shower mercy upon him) states,
“This is why the Scholars state in relation to these matters, “There is no usury (لا ربا)” rather than stating, “Usury is permissible (يحلّ الربا)” Allah protect us!”
It is stated in Radd ul Muhtār (with reference to Ash Shurunbulāliyah),
ومن شرائط الربا عصمة البدلين
“And from the conditions of usury is that both sides of the transaction be safeguarded according to Islamic Law
(‘Ismat ul Badalain).”
It is stated in Fatāwā Bareily, page 32, in relation to there not being any usury between a Muslim and the disbeliever who resides in Dārul Harb,
“The word for negation (لا) is for the negation of the entire category (نفي الجنس) which clearly means that the transaction involving the exchange of an extra amount is not usury (Ribā) when it is between a Muslim and a disbeliever who resides in Dārul Harb. Nevertheless, it is permissible for a Muslim to take an extra amount in this situation but as for a Muslim giving an extra amount that is received by a disbeliever who resides in Dārul Harb, although this is not usury (Ribā) but it is not permissible for a Muslim to give an extra amount to a disbeliever who resides in Dārul Harb thus causing him to obtain profit unless there is a dire need or a genuine necessity that is according to Islamic Law. Allah the Almighty states (in Sūrah Al Mumtahinah 60:9),
“Allah forbids you only from those who fought against you because of religion or drove you out from your homes or helped others to drive you out, that you should befriend them; and whoever befriends them – it is they who are the unjust.”
And Allah knows best.
Written by: Shaykh Omar Khan (Allah preserve him)
Verified by: Mufti Shamsulhuda Khan Misbahi (May Allah preserve him)
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During the tenth Fiqhi Seminar that took place in Al Jamiatul Ashrafia, Mubarakpur in 2004, Jurists of recent times discussed the definition of Dārul Harb whilst discussing the performance of Eid and Jumu’ah in Non Muslim countries.
It should be noted that Dārul Harb is opposite to Dārul Islām. The Jurists concluded that the most comprehensive definition of Dārul Islām is mentioned in Sharh un Nuqāyah;
دار الإسلام ما يجري فيه حكم إمام المسلمين
“Dārul Islam is the place where the rulings of the Imām of Muslims is applicable.”
Therefore, where the rulings of the Imām of the Muslims are not applicable, that place is Dārul Harb even though the literal meaning of the word, Harb (which means “war”), is not applicable to such a place which is Dārul Amn (place of peace) in the literal sense.
It is stated in Al Fatāwā Ar Ridhwiyyah, Volume 8, Page 381;
وبالجملة يشترط لدار الإسلام ابتداءً أعنى صيرورة دار الحرب دار الإسلام جريان حكم سلطان الإسلام فيها وبقاءً مجرد ظهور شعائر الإسلام ولو بعضاً وإن لم يبق الحكم ولا السلطان والله المستعان وعليه التكلان
“In summary, it is a condition for Dārul Islam at the offset i.e. in order for Dārul Harb to become Darul Islām that the rule of the Islamic Ruler apply there. (Once Darul Islām is established) the mere appearance of the symbols of Islām is sufficient for it to continue to be Dārul Islām even if only a few of them are apparent and the Ruler as well as Law do not remain. And Allah is the Helper and upon Him is reliance.” -
It is stated in relation to the wealth of disbelievers residing in Dārul Harb not being safeguarded by Islamic Law in Fath ul Qadīr by Al Imām Ibn ul Humām;
فإذا لم يأخذ غدرًا فبأي طريق يأخذه حلّ بعد كونه برضًا
“So when a Muslim does not take (wealth from a disbeliever who resides in Dārul Harb) through deception then it is permissible for him to take it in any way after it is clear that it is with the happiness of the disbeliever (who resides in Dārul Harb).”