Question:
I recently learned about Riba and how it is a sin to pay interst as well as charge interest. My car is purchased on a loan that does charge me interest. My goal is to have all of my interst bearing debts payed off as soon as possible. After I pay off my car loan, would my car be considered haram? Since I purchased it using a car interest loan before I knew that it was haram?
Answer:
In the name of Allah, Most Compassionate, Most Merciful,
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Indeed, interest is absolutely prohibited and a major sin. See the following:
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا ۚ (سورة البقرة: 275)
Translation: “But Allah has permitted trade and has forbidden interest.”
يَاأَيُّهَاالَّذِينَآمَنُوااتَّقُوااللَّهَوَذَرُوامَابَقِيَمنَالرِّبَاإِنْكُنْتُمْمُؤْمِنِينَ.(سورة البقرة:278)
Translation: “Oh those who believe, fear Allah and give up what still remains of the Riba (interest) if you are believers.(Surah Al-Baqarah: 278)
فَإِنْلَمْتَفْعَلُوافَأْذَنُوابِحَرْبٍمِنَاللَّهِوَرَسُولِهِ (سورة البقرة: 279)
Translation: “But if you do not then listen to the declaration of war from Allah and His Messenger.” (Surah Al-Baqarah: 279)
يَاأَيُّهَاالَّذِينَآمَنُوالَاتَأْكُلُواالرِّبَاأَضْعَافًامُضَاعَفَةً ۖ وَاتَّقُوااللَّهَلَعَلَّكُمْتُفْلِحُونَ (سورة آل عمران: 130)
Translation: “O you who have believed, do not consume usury/interest, doubled and multiplied, but fear Allah that you may be successful.” (Suran Aal Imran: 130)
عَنْجَابِرٍ،قَالَلَعَنَرَسُولُاللَّهِصلىاللهعليهوسلمآكِلَالرِّبَاوَمُوكِلَهُوَكَاتِبَهُوَشَاهِدَيْهِوَقَالَهُمْسَوَاءٌ(صحيح مسلم: 1598)
Translation: “Jabir (Radhiyallahu Anhu) said that Allah’s Messenger (Sallallahu Alaihi Wasallam) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal. (Sahih Muslim: 1598)
عنعبداللهبنحنظلةغسيلالملاءكةقالقالرسولاللهصلياللهعليهوسلمدرهمرباياكلهالرجلوهويعلماشدمنستةوثلاثينزنية
Translation: “It is narrated on the authority of Abdullah Bin Hanzalah that Rasulullah (Sallallahu alayhi wa sallam) said: One dirham of interest/usury which a man consumes while he is aware (of it being interest), is more severe than thirty-three counts of adultery” (Mishkaat Al-Masaabeeh: 2825)
We take note of your goal to pay out the car loan. If it is possible to obtain an interest free loan from someone, family, friend etc. and pay the loan, then that will be the ideal situation. If that is not possible and you paid the car loan out, the car will be Halal. However, you should make lots of Tawbah and Istighfaar for involving yourself in this very heinous sin of Riba (interest).
