Madinat al-Muslimeen Islamic Message Board
| Administrative charges or Riba? Please help |
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| proudtobemuslim |
| 06/04/01 at 12:40:30 |
| Assalam-u-Alaikum, A lot of you may know about the financial aid offered by many universities to their students in the form of loans and grants. However, the loans have for example, a 2% per annum "administrative charge" (which I assume would be to cover the costs of actually giving out a loan rather than to generate a profti) attached to it. Is this regarded as Interest and Riba? I think I know what you're thinking and I will ask a scholar as soon as I possibly can, but I really need the help anyone of you could offer. I need an answer fast if possible. If it isn't too much trouble I would really appreciate it one of the Madinites could ask a scholar on my behalf. I really need the Madina right now guys and would be greatly indebted to anyone who would answer. Thank you and Jazzak-Allahu Khair, Wassalam-u-Alaikum, Uzer |
| Re: Administrative charges or Riba? Please help |
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| jehad |
| 06/04/01 at 12:47:41 |
| if you borrow money and pay back more money it is riba. it does not matter what you call it, or how small it is. |
| Re: Administrative charges or Riba? Please help |
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| Hadid |
| 06/04/01 at 13:23:16 |
| wait. jehad don't forget a word : 'must'. 'if you borrow money and must pay back more money, it is riba. ....' if you borrow money, you may pay back more money as token of appreciate or else ... well, if accepted. --- to the question, just write my opinion though. Yes. However, if you are in desperate need the loan (there isn't any help from others), you may take it. Analogyzed from permission to eat pork when there isn't any food. Wallahu a'lam. Let us know if you have the answer. |
| Re: Administrative charges or Riba? Please help |
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| BrKhalid |
| 06/04/01 at 14:20:49 |
| Asalaamu Alaikum ;-) Br Uzer I have no idea !!! But one thing that I find confusing in this set up is why the fee has to be a percentage? I mean surely the cost of administering a £10,000 loan can't be that much different from a £1,000 loan say. Why isn't this "charge" a fixed up front price? If anyone else has any ideas I'd be glad to hear him. InshaAllah I'll see what I can find out Br Uzer Wasalaam Br Khalid |
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