Fatwa #3542319 April 2016United States of America
I'm currently looking for work, to pay off the loans, and some other unrelated debts I've accumulated upon myself, but I remember hearing many times that "paying" interest is haraam; how then can I avert myself from this issue?
Question
I have loans (financial aid loans) which I used for college some years back, that I've not paid off. Alhamdulillah, they've not accumulated over time; it seems they've been at a stand-still. Anyhow, regardless, it comes down to the interest they are charging me. At the time of taking the loan, I had just barely accepted kalimah and was finishing High School; therefore, I hadn't known much about interest being prohibited, or about the severity of the matter. I'm currently looking for work, to pay off the loans, and some other unrelated debts I've accumulated upon myself, but I remember hearing many times that "paying" interest is haraam; how then can I avert myself from this issue? I don't know what I should do. Please help me. Jazakallahu Khayra.
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuhu
If you are constrained to pay out the interest bearing loan, do so as soon as possible and make sincere Tawbah to Allah for committing such a grave sin. Make a firm resolve never to engage in an interest bearing transaction.
And Allah Ta’āla Knows Best
Ismail Desai,
Darul Iftaa
Checked and Approved,
Mufti Ebrahim Desai.