To finance your projects, there are several types of credit, and it's even possible to combine credit with collateral. Credit is a subject that raises many questions and controversies among Muslims. Indeed, at the time of the Koran's creation, the credit system did not yet exist. In other words, the processes were completely different from those of today. So can we define this practice as halal or haram?
Is credit Haram or Halal?
The question arises among Muslims: is credit part of their culture? what is Haram in Islam? The banking system did not yet exist at the time of the religion's creation, alluding to several subjects of debate among practitioners. Most religious experts agree that the credit is haram. From the principle where interest is not allowedFor example, a Muslim can only finance a purchase with a zero-interest loan or in cash.
However, in the event of vital necessity or a real needHowever, it is possible to cross the threshold. For example, a mortgage can be considered as such.
What does the Fatwa Council say?
The European Fatwa Council CEFR states that mortgages can be halal. However, it must meet certain conditions:
- You don't have to have a home that meets your needs.
- It must finance a principal dwelling.
- You must have sufficient resources to finance the property with cash.
As in other religions, different interpretations emerge. On the one hand, there are those who regard credit as legal provided certain conditions are met, whether it's a construction loan or some other form of credit. On the other hand, there are those who believe that credit is forbidden. Then, nowhere is it written that credit is authorized or prohibited. What's more, the banking system of yesteryear is very different from what it is today.
