Buying House on Riba- Loan to Leave Non-Muslim Country
5-9-2001 | IslamWeb
Question:
A brother is married and he has 6 children, he has just had a heart operation, he and his family live in a non-Muslim country. He wants to go back home but he does not own a house for his own family. He does not have enough money to buy the house, he has tried several ways to get the loan needed but at last nobody would give him the loan needed, so he is trying to take a loan from a non-Muslim Bank, where it involves Riba.
How would you respond to a circumstance like that, what does the Islamic Sharee’ah say about that and what advice would you give him?
Answer:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
The general rule in the Sharee’ah is that dealing with usury/interest is forbidden. If there is no lawful way to fulfill the necessity and one is compelled and does not have any other alternate in this time but to use the forbidden one, then he may use it.
Allah Says (what means): {So fear Allah as much as you are able and listen and obey.} [Quran 64:16]
Allah also Says (what means): {But whoever is forced [by necessity], neither desiring [it] nor transgressing [its limit], there is no sin upon him. Indeed, Allah is Forgiving and Merciful.} [Quran 2:173]
Therefore, if there is no dire need or if the necessity could be satisfied through lawful means, then one is not permitted to take interest-based loans in order to purchase a house. As long as a person is able to rent a house he is not permitted to open the door of what is forbidden for himself. Allah will destroy those things, which are purchased through interest, and such a person sets himself to the war against Allah and his Prophet .
Allah Says (what means): {Allah destroys interest and gives increase for charities. And Allah does not like every sinning disbeliever. Indeed, those who believe and do righteous deeds and establish prayer and give zakah will have their reward with their Lord, and there will be no fear concerning them, nor will they grieve. O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged.} [Quran 2:276-279]
So, dear brother one should fear Allah and should not deal with interest. The interest or other forbidden matters in the Sharee’ah must not to be approached except if one is compelled to do so while he does not have any lawful alternate to it.
Whoever fears Allah, He will make a way out for him to get rid of what is forbidden.
Allah Says (what means): {And whoever fears Allah - He will make for him a way out . And will provide for him from where he does not expect.} [Quran 65: 2-3]
Allah knows best.