I have took a loan. I am going to pay it back for next ten years. Every month I pay 600 dollars interest in this loan installment. After taking loan, I got 50 thousand dollars from somewhere. I asked bank to take it. They said it is not possible because we want to earn interest. Can I put my money in the same bank and earn interest on it which is around 100 dollars and then pay it back to same bank in the loan installment which has 600 dollars interest in it?

1 Answer 1



Taking or earning interest (riba) is strictly prohibited in Islam, whether it is from a loan, investment or any other financial transaction. The Quran and Sunnah have made it absolutely impermissible.

In your situation, there are a few important points:

  1. The loan you have taken seems to involve interest payments, which is haram (unlawful) according to Islamic teachings.
  2. Attempting to offset or reduce the interest by earning interest income yourself does not make it permissible. Dealing with interest in any form is considered riba and forbidden.
  3. The bank's refusal to accept your 50,000 dollars to pay off part of the loan early, solely to continue earning interest from you, highlights the exploitation and injustice involved in the interest-based system, which Islam wants to eliminate.

Instead of indulging in any interest-based transaction, whether paying or earning, the Islamic ruling is:

  1. Seek to pay off the interest-bearing loan as soon as possible through halal means to free yourself from this haram dealing.
  2. In the future, opt for Islamic financing solutions like Murabaha, Ijara etc. which are interest-free and Shariah-compliant.
  3. Invest your 50,000 dollars in Islamically permissible investments, trades or businesses which do not involve interest.
  4. Repent sincerely to Allah for the past interest-based loan and have a firm intention not to deal in interest in the future.
  5. Be patient as paying off interest-based loans early may involve penalties, but be mindful of not indulging in any new interest transactions.

The prohibition of riba is a very serious matter in Islam. I advise you to prioritize ending this interest-based loan through halal means and make a determination to keep all your financial dealings riba-free in the future, insha'Allah.

And Allah knows best!

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