Fatwa #395974 February 2018South Africa
Is financing with Al-Barakah bank permissible?
Question
As salaamu alaykum
I would like to apply for an Albarakah bank home loan in South Africa in December 2017.
Our property finance is based on the Shariah principle of Musharaka (meaning partnership).
Is this transaction of Albarakah bank permissible?
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Mushaarakah is a contract between two or more partners to invest some of their capital or to offer some services in which all the partners will share in the profits and losses of the joint venture on an agreed ratio.
We are unable to comment on the contract of Al-Barakah bank.
You may obtain a copy of the contract for our review. We will advise thereafter.
And Allah Ta’āla Knows Best
Muhammed Al-Ameen Bin Moulana Ismail Akoo
Student Darul Iftaa
Newcastle; KZN, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.