Transactions & Dealings >> Interest & Insurance

Question # : 146931

India

I am a free-lancer based in Delhi. I live in a rented house. My annual income is 8-10 lakhs rupees. My questions are: (1) I have an LIC Policy where I have to pay 24000/- per year. It covers death as well. Is it allowed?
(2) Can I take Home-Loan from a bank on interest? I have no other source of income, though I have some farming land.

Answer : 146931

Published on: Dec 22, 2016

بسم الله الرحمن الرحيم



(Fatwa: 291/267/B=3/1438)



(1) The business of LIC is based on interest and gambling; hence it is not lawful for a Muslim to avail such policy.



(2) It is not lawful for a Muslim to take loan from a bank in normal condition. It puts a man in trial and invites misfortune and problems in the house and business.




Allah knows Best!


Darul Ifta,
Darul Uloom Deoband

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