There are a wide range of reasons why you should have a loan that is interest free. Mainly it can be about saving money, rather than paying a high interest cost.
It may also have religious reasons. In Islam, there are rules regarding loans. So called “Riba” (ربا) . A believing Muslim therefore commits haram (an act that is forbidden) if he / she would not borrow money without interest. It is a rule directly derived from the Qur’an.
Muslims are only allowed to borrow interest-free
The word Riba comes from Arabic meaning “to increase” in Swedish. It is one of many rules that are taken directly from the Qur’an. The law is believed to exist for a believing Muslim not to lend money for his own gain.
I verses 3: 130, 30:39, the following excerpts from the Qur’an follow:
“Do not feed on usury that doubles and multiplies your profits”
Also from 2: 278-279 there is evidence that Riba is haram to the believer Muslim.
“Believer! Fear God and renounce outstanding usury if you are true. If you do not do this, you will know that you are at war with God (Allah) and His Messenger. “
Loans for Muslims in Sweden?
Many of the Muslims who live in Sweden today interpret the rule differently. The Muslims who have applied to Western economies are of the opinion that one should not do “usury”, but that “interest” is okay.
In other words, it is not so dangerous to borrow money without interest. However, you should not lend yourself money that is not interest free.
In Sweden, there are also examples of banks offering interest-free loans to Muslims. The expenses for borrowing instead become “service fees” or “administration costs”. In this way, many Muslims can see through their fingers and consider that they do not borrow money with interest.
You can find more about the rules of economics in Islam via the link.
Fast loans with no interest rate are okay?
As long as you do not borrow money with interest, it is okay for many Muslims in Western countries. This also applies to fast loans or SMS loans that are interest-free. Which we also suggest here on the website.
Even if you should borrow 1000 USD or if you are going to take a car loan then it does not matter. What lies at the center of whether it is haram or not is precisely the interest rate.
How do you avoid Riba & interest rates?
There are published tips for Muslims on how to best avoid Riba (hence haram).
- Borrow by family or friends in the first place. The bank should be seen as the last resort.
- Create a bank account that does not have interest (rib-free).
- Always pay bills and invoices on time. This is to avoid extra charges that can be considered useless.
- You should not enter into agreements that set interest-rate penalties for late payment, even if you plan to pay on time.
- Check if there are banks with interest-free loans directly in the account
- Rent a home if you cannot afford to buy a home without Riba.