Using a non-Muslim third party for interest-based loan
Question
Is the following permissible? I need a loan, so I ask a non-Muslim friend to take out an interest-based loan. He then loans me the money, I repay him the money and I give him extra as a gift to make the interest repayments, so I am not directly paying interest.
بسم الله الرحمن الرحیم
Answer
This is not permissible. The extra you are giving is not a gift, it is for the interest repayment, he knows that and so do you.
Allah knows best
Yusuf Shabbir
3 Dhū al-Ḥijjah 1445 / 10 June 2024
Approved by: Mufti Shabbir Ahmed and Mufti Muhammad Tahir
