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Loan with fixed interest or a fee

Fatwaa ID: 2232

Question:
Asalamwalaykum mufti , is getting a loan with fixed intrest, so the full cost is fixed, so all payments are the same and does not deviate,
Is this halal?
Would this be in the same category as variable interest?

And to follow up, is getting a loan with no interest, but a fee halal?

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

  1. It is haraam to charge or pay interest on a loan, irrespective of whether the interest is a fixed rate/amount or a variable rate/amount. The creditor may not benefit from a loan in any way.
  2. No. The creditor may not charge a “fee” for extending a loan. Calling interest a fee or something else will not change the reality of it.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

09/08/1445 AH – 03/19/2024 CE | AMG1-3814

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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