Loans & Debts

Q: I have a couple of debts I have to pay back. One is a non-interest loan via a friend. One is a previous student loan where the interest is extremely small. I took this loan out some years back when I didn’t know anything about riba. If I can get a loan (non-interest) from somewhere, is it permissible for me to invest this loan in something halaal in order to make money for myself so that I can pay off my debts first, before I get a job? For example, I am able to get a loan and invest in some business which would eventually provide some return. Assuming I still don’t have a job. Or, if I can get myself a job, although I have these debts, would I be able to save up and invest first before paying the debts off? Or can I save up and invest, while taking some of my savings and putting that towards the debts at the same time? What is the best course to follow and what out of the above us permissible? What way round is allowed?

Q: If a debtor comes to pay his debt two years after purchasing goods from us, do we have the right to charge inflation on the amount according to the rate of inflation?

Q: A Muslim bakery sold bread on credit fifty years ago valued at Kenyan Shillings 6500/-, and the price of loaf was KShs 0.75 (75 cents). At that time the debtor had failed to pay. Now his kin want to settle the debt when the price of a loaf is KShs. 50/- and is ready to pay extra over the 6500/- owed. Can the Bakery demand to be paid according to the current price of a loaf of bread? Or can they accept the initial debt of KShs. 6500/- plus the extra the debtor is willing to pay seeing the difference of the cost of loaf today and fifty years ago? As the actual currency is gold, can the debt be evaluated according to the price of gold fifty years ago and now, i.e., the amount of gold that could have been bought of KShs 6500/- fifty years ago and the value of the same weight of gold at the current local market be the repayable debt? The owner of the bakery (now run by his children) died many years ago. Please advise.

Q: A person has been attending a madressa. At the madressa there is a tuck shop which allows the students to take things on credit. As a student many things were bought on credit and paid later. A few years later the student has doubts in their mind as to whether they have paid their accounts accordingly. What can the person do besides asking Allah for forgiveness?

Q: Is it permissible to use credit cards as long as I pay off the balance without having to pay interest?

Q: I want to undertake a journey to Masjid-ul-Aqsa. However I do not have sufficient funds. The only asset I have is a car which is worth about R40 000. Can I take a loan to cover the trip maybe in the region of R20 000 and make it to that in the event of anything happening to me the car must be sold and the loan paid?

Q: My husband has recently handed his unpaid accounts owing to him, over to a debt collector. Recently he has found out that the debt collectors are frauds, they don't exist. I know his debtors haven't as yet settled their accounts with him, should he inform them of these bogus collectors.

Q: My father had been for Hajj over 10 years ago. At the time he had a very close friend who he had owed some money to. Before going for hajj, he went to his friend to pay off whatever money he owed him but his friend refused, saying go and enjoy your hajj, and being friends, he kept saying don't worry bout all of that now. So my dad went for his hajj, when he got back, a short time later, his friend past away in a car accident. My father is now older and is not working anymore due to his health , but because his friend never directly say don't pay me, its been worrying my father and so he decided to save up the money that he would have had to pay his friend and give it to his friend's son, who has no knowledge of this. After many months of saving, as he is now unemployed, he managed to save the money and was going to get the money sent to the son via a mutual friend within the week. Then within the weekend his house was burgled and the safe was stolen with the money in it. Does my father still have to save again and pay the money?

Q: I have saved up enough money to make Hajj become fardh on me however, I still have a substanial balance left on the car which I drive. What comes first, do I pay the car off or do I make intention and effort to go for hajj?

Q: We have business tenants who persistently don’t pay rentals on time. It appears that they are in fact able to pay, but deliberately withhold the money and instead utilise it to effect early settlement with suppliers in order to get an early settlement discount. In the case of such tenants, is it permissible to charge a late payment fee if the rental due is not paid on time?