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Monthly fee for loan

Fatwaa ID: 368

Question:
ٱلسَّلَامُ عَلَيْكُمْ وَرَحْمَةُ ٱللَّٰهِ وَبَرَكَاتُهُ

A brother informed me that he has an Umrah trip and it was expensive so chase offered him to do monthly payments without interest, but a fixed monthly fee of around $20 or so. Is that fee riba?

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

The “monthly fee” in reference which is charged by the bank for extending a loan is ribaa. Simply changing the name and making deceptive claims of “no interest” would not change the reality of the matter. It is not permissible to opt for such an option. In the enquired situation, Allaah Ta’aala is not in need of anyone’s ‘umrah, a fortiori if done through haraam. If one cannot afford it through a halaal method, then he should not go for ‘umrah. It is illogical and foolish to engage in haraam to do a sunnah or nafl act.

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

06/19/1444 AH – 01/12/2023 CE | AMG3-3149

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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