Fatwas February 15, 2011

Loan with interest

Question

I need you help. I am working with UN and need to buy a house for my family back home.. I requested a loan from United Nations Fund Credit Union, to buy a house. The Credit Union has propsed to give me a loan with 12% interest over 15 years...Do you think that this loan is not islamic? Please advice. I read your articles on Riba but am still confused. Your help will b ehighly appreciated

Answer

It is not Islamic, but as you are in need for it, it is not your fault. It is theirs. There is no sin on you. It is on them because they wrong you. For more details, please read my article : http://www.ahl-alquran.com/arabic/show_article.php?main_id=689 http://www.ahl-alquran.com/English/show_article.php?main_id=6251