Imam Khamenei – Rules Concerning Ribā

Q01. What is ribā? And is the amount calculated as a percentage taken by the people who have deposits with the banks regarded as ribā?

A: As an expression, a ribā-bearing loan involves paying an extra amount by the borrower to the lender. The profits arising from the investment of the money deposited with a bank for safe keeping, which is used by the bank behalf of the saver by virtue of an Islamic contract, is not considered ribā and, thus, is not problematic.

Q02. In as much as it is lawful for a person, in an emergency, to eat the meat which is not ḥalāl, is it permissible for a person, in a similar situation, to deal in ribā-based transactions to make a living?

A: Ribā is ḥarām. Eating non-ḥalāl meat, in an emergency, is different because the person who is forced to eat the meat has no other source to continue to live.

Q03. Is it permissible to buy goods by instalments for a price that is higher than the cash price? And does this amount to ribā?

A: There is no objection to selling and buying goods by instalments for more than the cash price. The difference is not considered ribā.

Ayatollah Sistani – Rules Concerning interest

Q01. If I know that the bank will give me interest even without stipulating the conditions, is it permissible for me to deposit in a savings account that takes the form of a term-deposit?

A: Yes, it is permissible, as long as you do not stipulate the conditions of interest.

Q02. Is it permissible to deposit or borrow money from Muslim banks whereby the interest is either received or paid out?

A: It is permissible to deposit money in a bank without prior condition for interest and it is as well permissible to take interest, if the bank in which money is deposited belongs to Muslims. If it belongs to government, it is permissible to take interest provided that half of the interest is given away to poor people (Momineen of them).

Q03. Is it permitted to pay interest to non-Muslims and also take interest from them?

A: Giving interest to a non-Muslim in a deal that is based on interest is impermissible and receiving it (interest) is permissible and there is no objection in it.

Ayatollah Makrim Shirazi – Rules Concerning Loans

Issue 01: It is permissible to execute a verbal contract for a loan and, as such, by the action that a sum is given to someone with the intention of a loan and the other side takes it with this same intention. Both situations are proper.

Issue 02: When both (the lender and borrower) have specified a time period for the loan, it is not permissible for the lender to seek his property before the arrival of the time of this period. As for when a time period had not been specified in the repayment of the loan, it is permitted for the lender to seek his property at whatever time he desires.

Issue 03: When a loan was deferred for a period and the desire of the debtor is to pay his debt before the arrival of the due date, it is not obligatory upon the lender to accept that. However, when the period is specified as a provisional period with the borrower, if he desires to pay back his debt whenever he desires it is obligatory upon the lender to accept that.

Issue 04: Paying interest is like receiving it, forbidden. He who takes a loan with interest does not take possession of it and it is not allowed for the borrower to utilize it. However, when it was such that the owner of the property agrees that the borrower utilized the property, as long and unless interest is not made a condition, it is permitted for the borrower in this situation that he can utilize that property

Issue 05: When a debtor dies, it is obligatory to pay all of the debt obligatory upon him without waiting for the time period (to expire). It is permissible for the lenders to seek their debt.