Can a person take a loan that has interest (Riba)?

Q: I would like to know about buying a car through a credit union. Their interest rate is very low. If some one really needs a car and doesn’t have the money to buy it cash, is it ok to buy a car through a bank or in this case the credit union. I really don’t want to deal with interest. I see a lot of practicing muslims have mortgages on their houses and buying car through banks. So I want to know if there’s any part of it where it might be permissible.  I would a appreciate a response as soon as possible. Jazakallaah Khair.


A: Wa Alaikum As Salaam,

Transactions in which you are required to pay interest is totally haram, and hence, not permissible in Islam. You should try to source the finance elsewhere so you can purchase the vehicle. If however, you can not find any alternative and you have a dive necessity for a car, then it will be allowed to enter transaction to the extent of your necessity. You must however, try to get out of it as soon as possible. (KItabul Fatawa Vol.5 Pg.368).


And Allah Knows Best.

Mufti Waseem Khan.