Taking a home loan

Taking a home loan


Assalamualaikum wa rahamtullahi wa barakatuh. Alhamdulillah, My husband works as an IT employee in TCS, Chennai. He earns 80,000 per month. We live in a rented house in Chennai which costs about 15000. His parents also live in a rented house in Andhra. My father in law works in a private company and will probably retire next year. My husband has to look after his parents as well. With this salary, it is not possible to buy a house and prices are also increasing day by day. Yearly he is paying around 50000 as income tax to the government. We will be exempted from tax if we show proofs of any schemes or funds or any loans. If we take homeloan for 10 years, and tax payable for 10 years is same as the interest charged on homeloan for 10 years, Can we take homeloan to safe our hard earned money? Also, i have also got a share from my mothers property on which i get yearly income. And my father in law will get a share from his mothers property which takes time and his retirement money from company will also be given, though he has used some of it during his non working period. We shall use these benefits to repay off the loan sooner. Jazakallah for answering.


In the name of Allah, Most Compassionate, Most Merciful,

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

Sister in Islam,

Taking out an interest-bearing loan is prohibited. There are severe warnings in the Qur’an regarding those that involve themselves in interest. We are situated in South Africa and cannot adequately assess your situation through email. We advise that you present your situation to a local Mufti. He will advise accordingly.

And Allah Ta’āla Knows Best

Mirza-Zain Baig

Student - Darul Iftaa

Montréal, Québec, Canada

Checked and Approved by,

Mufti Ebrahim Desai.

27-11-1441| 16-07-2020