Charging interest on loans

Q: My mother passed away. She used to give loans and charge a percentage when they pay back. Is that money halal for us according to the shariah. My understanding is that the money is haram since it is interest. What should we do?

A: This money is interest and interest is haraam. It should be returned to the people it was taken from unjustly. If one is unable to trace the rightful owners, then the wealth should be given in charity on their behalf. The wealth will not form part of the estate of the deceased.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)