Faith IQ – Ruling on Business Loan Offered By Govt Who Pay Interest Charge of The Loan – Shaykh Abu Eesa

			Why is the ruling on applying for a business loan offered by governments who will pay the interest
charged upon it for a period of time, giving you a chance to pay it back before any further interest
is due?
		

			to this question actually is going to be the same depending upon how you see the permissibility of
credit cards. And you know, that I've spoken about that matter and other contracts a lot actually on
faith essentials, and in faith IQ as well. So you can go there for the details. In simple summary,
if you allow credit cards, then you're going to allow this, basically, they see you agreeing to this
condition. And by the way, let me just quickly give you an introduction to this, a number of
governments have introduced this concept of a balanced bank business loan, a little bit of an extra
support for businesses that obviously have lost out their income. So here's a loan, say 25,000
		

			pounds, dollars, 50,000, whatever. And they will say, for 12 months, for example, you do not need to
pay the interest payments on that the government will pay that for you. But after 12 months, then
you will have to start repaying that loan with interest as well. And if you pay it back within 12
months before the time has expired, then not only have you not
		

			had to pay any interest, but then you basically get interest free loan effectively. That's what a
number of governments are now offering. So as I said, if you believe credit cards to be allowed,
then you know, in credit cards, it's the same thing, they're giving you a period of time to pay it
off. And then after a period of time, you have to pay back the interest as well as the loan and the
promise to pay a rebel for them. It's like you know what, I'm just making that statement, it means
nothing. It's not a condition that is recognizing Sharia. So let them you only say what they want
outside to her, I have no intention of actually falling into her. But I've made one of my my
		

			arrangements, I've taken my precautions. And I have no intention of actually believing in this
condition that I've agreed to the majority of scholars on the other hand, and I also follow that
position, it can be argued that the majority of scholars and certainly the position of the Islamic
fit Council, the International majority circle Islami, we consider that credit cards are not
permissible that condition where you agree to pay interest is something which is not permissible to
do, you wouldn't agree to i, if this happens in our drink alcohol, if this happens, and I'll go and
steal this in. So why would you accept that? Yeah, if this happens, then I will pay interest. So
		

			that's our position on credit cards. That's our position on this loan as well. And that's it.
However, there is no doubt that this difference of opinion between the scholars is one in the minor
aspects of this issue. Meaning is in the contractual, contractual secondary matters, it's clear that
taking this loan is not the same as taking a straight out conventional rebel loan, where you're
paying interest from the beginning and so on and so forth. And although I might consider myself both
to be Haram, they are not the same at all. And therefore, if there is someone who is in need, or
their business is failing, or they are becoming dependent upon government help, and this is the only
		

			thing that is out there for them to get access to that I believe it is permissible for you to access
that I do not believe you are sinning, because a good number of scholars, and there is a valid issue
had is not some sellout position, they do consider it to be permissible, and that when there's an
equity law valid, if they laugh, then it is permissible in a time of need, or desperation to take
that. And secondly, it's clear that a person who is in that desperate scenario, regardless of
whether there's a difference of opinion or not, then we know that if the situation becomes
difficult, then it becomes easy in an extreme scenario, on a case by case basis. So if there is a
		

			need for it, that you can that you can justify, then it is permissible for you to take that by
taking the position of the the primary scholars and even if you didn't take that position, just
because there is a need. I will add one caveat, though, I just want you to know that this idea that,
you know, don't get caught up in the idea that the government is paying the interest actually all
interest free a deals that you get for your TV or your car, whatever has interest there. But it's
factored in either by increasing the payments or not normally, because there's a finance winter,
most of these companies that give you this interest free finance, they're actually paying the
		

			interest payments themselves, they're hoping that you're going to default. And they obviously make
whole loads of money, which is why they keep offering these products to people, because they know
that it takes over there are always a certain number of people that make that promise and great
intention and all the rest of it, but they fail, and then they end up having to pay, they end up
having to pay interest. And that's why they make the money from it. That's why credit card companies
do so well. They will from the most booming of businesses and the big companies that offer interest
free finance, so don't get fooled by decided that the government is going to do something incredibly
		

			new. This is happening all the time. And the government itself, obviously their intention is
something better. There's no doubt about that. However, don't feel so safe. In any case. Another
point just before I end, and that is that I don't think it's right that you justify to yourself.
Yeah, you know what, some scholars allow it. And he, you know, he just said that it's okay to take
that opinion. And I have a need and your need is what just leveraging the money IE taking that money
because it's now 50 grand in your hand and I'm going to now
		

			open another business or invest in the stock market because it's an all time low or I'm going this
is not a need this is you taking advantage of free cash available which is very different to helping
support your business or as a necessity itself. Now obviously, if you're taking from the first
position where it's allowed, then you haven't got a problem. But if you're taking from my position
and you did something like that, then in my in my opinion, that's something which is not allowed, I
do not consider that to be permissible. However, as I said, if there is a need and you taking from
the position of the the scholars the minority position, that is something which is permissible. That
		

			is something that you can do while la hota Allah Allah
		

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