Are fixed interest rate loans halal? - fixed interest only loans
Please let me know if you know of fatwas on this issue.
Definition:
a fixed rate loan: A loan or a mortgage with an interest rate unchanged at a predetermined interest rate for the duration of the loan.
Fixed Interest Only Loans Are Fixed Interest Rate Loans Halal?
1 comments:
No - a fixed rate loan doesn't make the 'halal'.
In fact the rate is irrelevant. Any money made from money is not halal.
Instead, the money has to be put to some use, and profits can be made from this use. So for example, if its a property transaction, buy the property with money and then sell to make a profit, or let out to make a profit. How you calculate the profit is irrelevant. The rent can be fixed or variable (with some conditions).
The 'lender' in this case wouldn't technically be classed as lender, rather an 'investor'.
I hoppe that answers your question.
Nizam Patel
One Option Finance
http://findmeasolicitor.com
07970 715947
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