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Which Option Is Better: Taking A House Loan Or Selling Plot For Construction?
I have 3x residential plots. I am going to borrow loan for house construction.
My question is for house construction which option is better from religion point of view.
1. Do I sell one of my plots?
Or
2. Do I borrow loan for house construction and pay interest?
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2 Replies
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Which Option Is Better: Taking A House Loan Or Selling Plot For Construction?
updated 2 years, 5 months ago
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Replies
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You can loan from the bank to build your house.
If it is personal loan, the interest you pay doesn’t make you sinful. There is condemnation for the one who pays interest. He is in need of it, even if the need is not a pressing one. Quran and Hadith doesn’t make him blameworthy for paying interest.
If you mortgage your plot, it is lawful, halal.
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Either of the options can be opted. There is no objection on either of the options.
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Excerpt from Article of Javed Ahmed Ghamidi:
“No objection can be raised on paying interest because the prohibition of interest is based on the Quranic principle of akl al-amwal al-batil (devouring wealth through unfair means), and a person who pays interest does not devour the wealth of some other person through unfair means. In fact, he pays a part of his legitimately earned wealth to the borrower in lieu of the loan he provides. The issue of interest is mentioned at more than one instance in the Quran. Not at one place has the Quran condemned those who pay interest. In fact, it calls them oppressed and asked the lender to give them time if they are facing financial constraints. Those who regard paying of interest as prohibited do not base their view on any verse of the Quran or any implicit or explicit deduction from any of its verses. They base their view on a Hadith narrative which says that the Prophet (sws) has cursed the person who consumes interest and makes others consume it. The words of the narrative are: آكِلَ الرِّبَا وَمُؤْكِلَهُ … لَعَنَ النَّبِيُّ (Al-Bukhari, Al-Jami al-sahih, vol. 5, 2045, (no. 5032)) In this narrative, the word مُوْكِل is used for a person who makes others consume interest. Linguistically, it can refer to a person who pays interest and also to people who are the agents of professional lenders and in this capacity hunt for potential customers for their masters. If lending on interest becomes a business, then such agents are its essential need; without them, the business of lending interest bearing loans cannot be run. If the narrative relates to such people, then there is no complexity in the narrative because this is blatant co-operation with evil (taawun ala al-ithm). As agents of interest-lenders, those who prepare agreements and documents for them and act as witnesses, their matter too is no different. The service provided by bank staff of these times is of similar nature. However, people who acquire interest-based loans cannot in any way be regarded as guilty of co-operation with evil (taawun ala al-ithm). This expression can only be used for an act done by perpetrators of a sin and for those who reap the benefits of this sin. Those who acquire interest-based loans do not acquire it to help the devourers of interest, they obtain loans for their personal and business needs. If this is co-operation, then it is not more than the co-operation done by our scholars and righteous individuals when they deposit their own wealth and that of their institutions in banks. If interest is prohibited at the state level and all forms of interest transactions are brought to an end, then such people who still pay interest can be regarded as criminals who have breached a law. If the Hadith narrative cited above refers to them, then the directive should relate to the scenario just stated – when interest transactions had been prohibited in the time of the Prophet (sws)”. (Excerpt from Article of Javed Ahmed Ghamidi Translated by Dr. Shehzad Saleem)
(Further Details: Discussion 1271 • Reply 1403)
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