 |
|
|
|
Session Details
|
| Guest Name |
Dr. Monzer Kahf
|
| Profession |
Scholar in Islamic Economics & Financial Expert
|
| Subject |
Financial and Economic Issues
|
| Date |
Sunday,Jan 18 ,2004
|
|
Time |
Makkah
From...
18:55...To...
20:30
GMT
From... 15:55...To...17:30
|
| |
| Name |
Host
-
|
| Profession |
|
| Question |
.
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Brothers and sisters, the session has already started. You can submit your questions. Please, make your questions short and clear so as to help us answer all your questions.
Yours,
Islam Online Fatwa Editing Desk.
|
| |
| Name |
Akhtar Bangladesh originally from US
-
|
| Profession |
|
| Question |
Respected scholar, I have read all relevant fatwas on lands purchased for homes, etc. I don't need a very lengthy discussion.
My question is, "I bought a piece of land in Dhaka, Bangladesh for constructing a house in 1993. I have not been paying any Zakah on it. Since the law and order of the country has been deteriorating day by day, if I change my mind in the future and sell the land and buy another house, do I pay Zakah? If I sell the land, and don't buy anything, do I pay the Zakah for the nisab of that year or the entire period I owned the land? Thanks for help!
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
This land that you purchased to build your residence on it is not subject to Zakah. However, if you change your mind and decide to sell it, you pay Zakah once only (2.5 of the proceeds of the sale) on the ground that this is the Zakah on fund acquired (al-mal al-mustafad).
Allah Almighty knows best.
|
| |
| Name |
Khamis
-
|
| Profession |
|
| Question |
Through my work, I used to purchase an EE United States Saving Bond (pay check deduction). I thought this way of saving is correct, but I stopped buying them later fearing they are Riba-based. But, I own a lot of these certificates, which mature in the next few years. They are double the value after 8 years ( if the I buy the certificate for $500 after 8 years I can cash it for $1000) is this Riba? If so what can I do? Should I cash what I have and take only my money and give the reset to the needy?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
These US treasury pounds are interest-based. Interest in them is the differential between the purchase value and their face value if they are retained until maturity (the double value you mentioned).
Interest cannot be earned by a Muslim. It is not considered your right to have it according to the Shari`ah since an interest-based contract is void and does not generate its effect.
This means that you get only the amount you paid for these pounds and any extra amount above that is interest; you have to give it away to Muslim charity (either to poor and needy directly or through charitable organization). The Qur’an says: “and if you repent, you get only your principal with no injustice made by you or against you.” (Al-Baqarah: 279).
Additionally, you have to liquidate these pounds as soon as you can, because holding them make a continuation for persistent of a prohibited investment.
Allah Almighty knows best.
|
| |
| Name |
Hind
- Australia
|
| Profession |
|
| Question |
My question is regarding interest, I'm currently renting a house and would like to purchase a house but in order for me to do so I would have to go to a bank for a loan. Is there any way that Islam permits this?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Interest is certainly prohibited for all kinds of financing, be it housing, business, cars, or any other form of financing.
Every prohibition may have exception in cases of needs or necessities. Like any other prohibition, if there is a pressing need for a need of the whole community (general need), the prohibition of interest is exceptionally relaxed.
This means that, in principle, there is no way for a Muslim to get house financing on interest basis, but if there are needs, this prohibition is relaxed provided that there are no Islamically permitted financing contracts available at competitive prices and cost. The need that we are talking about include family need for housing, suitable neighborhood, saving on taxes and other costs, building equity, etc.
Allah Almighty knows best.
|
| |
| Name |
Hamid
-
|
| Profession |
|
| Question |
Dear Dr. Monzer, I would like to ask the following questions about credit card: 1. On what basis – I mean fiqhi basis - did both the opponents and proponents of credit card base their view of prohibition and permission?
2. What are the cases of hardship that could be mentioned for the permission of credit card?
3. Does the hukm of credit card differ in Islamic countries where Islamic banks are available, or it is a general hukm?
4. Does the OIC have any fatwa on credit card? And if yes, what is their resolution?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
1. The opponents of credit card found their view on the basis that it is an interest-based loan contract, consequently it is haram on the ground that it is Riba. There is no doubt that issuing such an interest-based credit card is not permitted for any Islamic/Muslim financial institution. On that basis, Islamic banks issued credit card that are not interest-based. Essentially, the bank withhold from your account an amount as a guarantee for the payment at the end of the grace period of the card, and each month if your current account permits it, the credit card charges will be deducted from the current account, otherwise the amount withheld will be reduced by the amount you due on the credit card and you will be asked to replenish the amount withheld. Islamic banks do not really benefit from the card itself and they provide it as a service to their valued customers. However, they benefit from the mudarabah deposit withheld as a guarantee.
This is also the essence of the OIC resolution on credit card that came in the year 1999 or 2000.
The proponents of the permissibility of using interest-based credit card found their view on the following:
a. While it is true that issuing interest-based credit card by Muslims is not permissible, accepting them by Muslim is permissible because they give a choice to the consumer of either going interest-based or settling within the grace period without any interest. The contract is not a loan contract, it is rather a prior acceptance of hawalah or it is kafalah by the issuer of amount charged by the user.
b. The permissibility of signing a credit card contract and using it is conditional on two points: 1) that the user is keen and able to pay within the grace period; 2) the user will not withdraw cash (because cash withdrawal generate interest from the day of withdrawal and does not have a grace period).
In other words, permissibility is conditional of not invoking the interest clause in the credit card agreement or by using the credit card as a free rider.
2. The permissibility is not based on Muslim/non-Muslim country, nor on needs for the interest-based credit cards. Many people can live without them, but they provide considerable convenience for Muslims who live in a twenty/1 century (please notice that all opponents of credit cards do not live in our time, they are still living in the fourteenth and fifteenth closed economy century.)
Note: the annual fee in credit cards is permissible and practiced by many Islamic banks.
Allah Almighty knows best.
|
| |
| Name |
Michael
-
|
| Profession |
|
| Question |
This question is related to Zakah. I'm a stay-at-home father of my two young sons, their wife works, thus I make no income. How can I pay my Zakah? I'm a Muslim, my wife is one of the People of the Book. Can we take some of that income she makes for Zakah or is that prohibited?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
If you do not have income or items of wealth that are subject to Zakah, you simply are not required to make any payment as Zakah. Zakah is a personal form of worship, it applies to each person alone and your wife is not required to pay Zakah, because she is not Muslim.
However, please remember that it is your responsibility to work and spend on the family, wives are not required according to the Shari’ah to spend on the family.
Allah Almighty knows best.
|
| |
| Name |
abdul
- United States
|
| Profession |
student
|
| Question |
I am in Love of a girl, who is getting engaged to someone else, can I propose her ?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
No, you cannot do it. It is better to submit your question to a General Fatwa Session.
You can also read:
Can I Wish to Marry an Engaged Person?
Allah Almighty knows best.
|
| |
| Name |
-
-
|
| Profession |
|
| Question |
1- Given the fact that interest is prohibited in Islam, what is the best way to grow your savings here in North America. 2- Are there any web links to Islamic Banks in North America?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
No, there are not, and unfortunately this is not yet organized by Muslims in North America although it is fard kifaya (an obligation on all who can do it) that we should have Islamic channel for investing our savings in North America.
Allah Almighty knows best.
|
| |
| Name |
Mohamed
-
|
| Profession |
|
| Question |
I live in the UK. The law in UK forces people who have cars to put insurance on their cars. I have put a fully comprehensive coverage (i.e. insurance) on my car. One of my friends mentioned that this type of cover is forbidden according to the Shari`ah and I should buy only third part coverage. I would like to get a comprehensive answer for this as my car was damaged in an accident and the insurance company will compensate me the value of my car according to my cover with them.
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
There are people who view that insurance is prohibited on the ground of Riba, gambling and ambiguity or gharar. However, there are others who are of the view that insurance does not have any have any Riba and gambling and the amount of gharar n it is tolerable and has precedents in the classical Islamic Fiqh.
I believe that insurance of all kinds is permissible provided that the contract is not interest-based (only sometimes of life insurance include interest) and the subject of insurance is permissible (e.g. insuring a liquor shipment is not permissible).
Since I believe that comprehensive car insurance is permissible rather it may be recommended, otherwise you would not be implementing the rationality that is required by Muslims as the Prophet (peace and blessings be upon him) is reported to have said: “Tie your camel and put your trust on Allah.”, which implies that one should do what is required rationally and then leave the rest to Allah.
You can also read:
Fatwa on Insurance
Allah Almighty knows best.
|
| |
| Name |
Safy
-
|
| Profession |
|
| Question |
Dear sheikh, I'd like to ask you a question about Zakah. If a Muslim does not work in business nor in trade, what are the conditions in which a Muslim must pay Zakah? And is it enough if one's parents pay the annual Zakah on one's behalf or must the Zakah be paid individually? Also, I own some collector's coins and notes of which some still have legal value and can be used as regular cash. Will I have to add these to the %2.5 of zakah?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Zakah is a personal worship that must be done by each Muslim who fulfils certain conditions. Basically, having income that provides for some surplus (savings) above your expenses and wealth items that have stayed with you for a full lunar year. If these conditions do not apply to you, there is no Zakah on you. Your parents, each one of them, would pay their own Zakah.
The collector’s coins that you have are subject to Zakah provided they reach the amount of nisab (# US 1000) and a full lunar year (354 days) have passed from the day the value reached nisab. Zakah is due at the rate of 2.5 % and is repeatable every lunar year, then after.
Allah Almighty knows best.
|
| |
| Name |
A. El Haji
- Netherlands
|
| Profession |
|
| Question |
Could you please explain a little about the Islamic viewpoint of stock trading?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Buying a stock makes you a partner owner of the company and therefore responsible for what the company does. Exceptions on the basis removal of hardship are discussed in detail in several fatwas that are available on www.kahf.net.
Allah Almighty knows best.
|
| |
| Name |
salah
-
|
| Profession |
|
| Question |
My question is about interest. Before my husband became a Muslim he had gotten a student loan that has interest placed on it. How should he go about paying it back? Also, he has to child support which also has interest on it. How should he pay this without getting into trouble with the courts?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Whatever interest contract before your husband became Muslim or even after but before he repents from indulging in interest-based transactions or imposed by a court order must be paid. He must try his best to pay the principal due on him as soon as he can in order to reduce his indulging, as much as possible, in the sin of interest even if he has to make loans without interest from friends and family or put some tolerable pressure on the family expenses.
Allah Almighty knows best.
|
| |
| Name |
sal
-
|
| Profession |
|
| Question |
My question is regarding mortgage or any other debt in relation to paying Zakah. If one has long term debt such as mortgage or short debt such line of credit, how is it dealt when paying Zakah?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In calculating the due Zakah, debts that are deductible from the Zakatable amount are only those that will be paid using parts of the Zakatable amount itself. This means that mortgage debt is not deductible because it is not going to be paid out of the balance you have today in your bank account. Also, a line of credit may or may not be deductible depending on whether you are going to actually use the balance you have today to pay for the line of credit.
Take an example, if today is my Zakah calculation day and I normally expect my next cash in slow in to be thirty days from now, all debts due within these thirty days can be deducted from the amount of Zakatable items I have now even if some of these debts are an installments of mortgage or any due parts of a long term debt.
Allah Almighty knows best.
|
| |
| Name |
Waqas
- Pakistan
|
| Profession |
Student
|
| Question |
I would like to know if Islam allows one to operate as a middleman. What is the Shari'ah concept of a middleman? It was also made known to me that one can not sell a thing unless he has bought it and brought it in his custody. Is that true?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
1. Working as a middleman may have two meanings: 1) to facilitate a transaction between two parties, this is permissible, it does not require you to be a seller or a buyer, you work only on commission basis to help bring the two parties together; 2) it may also mean buying from producers and selling to retail traders, like what wholesalers do. Here, we have two separate contracts that the middleman is part to each one of them. This is also permissible provided each contract is permissible on its own.
2. Yes, it is true that you cannot sell what you do not own, and you cannot tell what you purchase but did not yet take possession or custody of (delivery).
Kindly notice that this applies on items defined and determined on their own, such as this building, this car with body number … or this computer that I have on my desk itself.
If you sell/buy on description, it is permissible to sell what you do not own nor have possession of. The example is I sell you 10 computers of such and such specifications, it is permissible to make such a contract without having these computers in your possessions or in your ownership, provided that they can be made available by you before they are due for delivery to their purchaser.
Allah Almighty knows best.
|
| |
| Name |
Youness
- Norway
|
| Profession |
|
| Question |
My question is about Riba. Can I use Riba earned from my bank account on da`wah materials or do I have to throw them away? If not, what should I do with this money?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Acquired Riba should be given to Muslim charities. If the Islamic center to which you give decides to use it for da’wah material, it is permissible but it is preferable not to use such money for buying copies of the Qur’an for free distribution. You certainly do not throw away this money as there are many poor and needy all over the world, mostly Muslims and many non-Muslims too.
Allah Almighty knows best.
|
| |
| Name |
Waqas
- Pakistan
|
| Profession |
Student
|
| Question |
As-Salamu `Alaykum, kindly answer to the complete question. What is the divine system of financing? Is it pre-determined? How much rizq one is to get? If so can it change? Thank you.
|
| Answer |
Wa`alykum As-Salamu warahmatullahi Wabarakaatuh.
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
The divine system of financing is not interest-based. It can be founded on credit sale, leasing, or venture capital.
Rizq and life are predetermined by Allah, but He did not tell anyone of us what He set for us. He rather told us work hard as much as we can to acquire our rizq. Don’t you see the bird starting their day early in the morning and they go back in the evening with full stomach and sufficient food for their babies?
Allah Almighty knows best.
|
| |
| Name |
Waqas
- Pakistan
|
| Profession |
student
|
| Question |
If someone asks me for a loan and I give him an equivalent amount of gold so that when he returns it he returns to me the same amount of gold and not the money, would that be Ok?
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
You cannot give the equivalent of gold. If you give rupees, you get back rupees, and if you get gold, you back gold. You cannot make assumption.
Allah Almighty knows best.
|
| |
| Name |
Editor
-
|
| Profession |
|
| Answer |
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Brothers and sisters, we are so sorry for not answering all your questions because the time is over. We apologize for any inconvenience. Do keep in touch. Join us in coming sessions.
Yours,
Islam Online Fatwa Editing Desk.
|
|
|
|
| All Fatwas published on this website (Islamonline.net) represent the juristic views and opinions of eminent scholars and Muftis. They do not necessarily form a juristic approach upheld by this website. Click here to read Full Disclaimer. |
|
|
|
|
|
