Category: Business Matters
Fatwa#: 39459
Asked Country: United States

Answered Date: Dec 31,2017

Title: Interest & Rent


1.In India Can We Use Bank Interest ? There is a Hadees in Muslim That No Interest Exist Between A Harbi And Muslim In Daryl Harb ?

2.Some Jurists Argue That Interest Is Fixed and There is no Element of Risk Hence Impermissible But If We Invest in Building and Give it on Rent then we receive fixed amount and there is no risk then Why This is Permissible




In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

1] Please refer to the following link. It is a detailed research on the topic by Mufti Abrar Saheb (Damat Barakatuhum):

2] Renting and interest differ from each other by several aspects:

A) Interest

  1. Interest is lending money for a certain period of time with a condition of an additional amount on the principal amount. [1]
  2. After advancing money, the creditor does not take any risk of the money because if the money is lost by the debtor, he is bound to repay the loan.
  3. Loaned money does not depreciate.
  4. Money and money-like goods cannot be rented because they are consumed.

B) Rent

  1.  Renting means transferring the “usufruct” of a property from the owner to the tenant for a certain period. The rental price is the cost of usage right for the defined period. [2]
  2. The lessor has taken the risk of the property, if the property is destroyed, he will bear the loss.
  3. Property is always subject to depreciate.
  4. The rented and the received property are exactly the same in renting. Rented properties cannot be consumed and consumer goods cannot be rented.

And Allah Ta’āla Knows Best

Anas Sharieff Qasmi.

Student Darul Iftaa

Hyderabad, India.

Checked and Approved by,
Mufti Ebrahim Desai.


[1] Contemporary Fatawaa by Hazrat Mufti Taqi Usmani Saheb (Damat Barakatuhum). Pg-168

[2] An Introduction to Islamic Finance. Pg-158


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