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Source of creditor’s money

Fatwaa ID: 574

Assalam wa alykum,

If I ask my parents or anyone for a direct loan from them so I don’t pay interest, but they just go and take a loan out of the bank in their name and give me the money. This is haram money right? I know that they say if someone gifts you haram money it becomes halal for you but since this is not a gift and you will pay them back, is it haram to take it?

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

You refer to two issues: borrowing money which may potentially be haraam and accepting haraam money as gift. Hereunder is a brief layout of these two queries:

  1. You are not responsible for the source of the money loaned to you. The onus and sin will be on the person if he had taken it out through a haraam method.
  2. If the wealth of a gifter is solely haraam, then it will not be permissible to accept a gift from him. However, if the gifter has multiple sources of income, some of which are halaal, then it will be permissible to accept that gift provided that it may potentially be from the halaal sources. If one is not sure of the source of the gifter’s income, then the default is that it is halaal. There is no need to unnecessarily doubt it.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

07/22/1444 AH – 02/13/2023 CE | AMG3-3345

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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