Having a credit at Al-Baraka Islamic bank

23-5-2004 | IslamWeb

Question:

Is it permissible to have a credit from al-Baraka Islamic bank for importing raw material for industrial use? Please reply as soon as possible.

---

Answer:

Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.

 

We do not know to what extent Al-baraka Bank is abiding by the Islamic jurisprudence in its dealings.  However, we affirm that loans are of two kinds:

·        A loan (good loan) without interest or usury, this is permissible and there is no problem about it.

·        A loan with interest and usury, whether the interest or usury is a big amount or a small amount.  This kind of loan is Haram without doubt.

Both the creditor and debtor are sinful, as Muslim reported from Jabir (Radiya Allahu Anhu) who said: “The Prophet (Sallallahu Alaihi wa Sallam) said: "Allah has cursed the one who eats Riba (usury and interest) the one who provides others with it, its witness and its writer." [Al Tirmizi].

 

Allah knows best.