['Aalim Network QR] Interest on Credit Cards and Loans

[abbas@dircon.co.uk (Abbas Jaffer)]

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|       In the Name of Allah, the Compassionate, the All-Merciful       |\
|  Greeting of Allah be upon Muhammad and the pure members of his House |\
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Salamun Alaykum,

The following question was kindly answered by Sayyid Muhammad Rizvi.

Regards,

Abbas Jaffer
Moderator -'Aalim Network

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QUESTION:

My question: Is the paying of interest on credit cards, loans etc haram, and 
also, is taking interest haram?

I have read the previous responses on these issues from the archive, it mentions
that under certain circumstances it is allowed. I would like some clarification 
in this matter.

I would like my question to be answered by Ayatullah Sistani's guidelines.

ANSWER

Our mujtahidin have technically separated the issue of taking a loan from
the issue of paying interest on it. They say that taking a loan is permissible 
but paying the interest is haram. If the loan agreement contains the clause of 
interest charges, the mujtahidin say that "the loan agreement is okay but the 
condition of interest is invalid." That means that religiously you are not under 
any obligation to pay the interest.

I have written to Ayatullah Sistani about taking a loan in which one knows
that he will end up paying the interest: Is it a sin to pay interest in such a 
case which one has imposed on oneself?

His answer was that it is not considered a sin, because technically, he
considers the charging of interest by the creditor as unjust and usurpation.


Sayyid Muhammad Rizvi