Monthly Archives: July, 2012

Concerning Mortgage in Sharia Law

Ar Rahnu (Mortgage)

Alhamdulillah (all praises be to Allah), prayers and peace be upon The Prophet Muhammad, his family, and his devoted companions.

The contract of mortgage is a contract where a stuff being restrained, as a guarantee of a credit. This restrain is aimed to give security for the creditor over his credit. By that, the stuff or item to be restrained should be valuable, so that the creditor will be able to sell it, if the debtor could not settle his debt on the appointed period.

Mortgage is one proof that Islam have already possess a complete and perfect economical system, as this Shari’a always guarantee an even economy distribution to all parties involved in every transaction. The applier of credits can fulfill his needs, while the creditor deserve a guarantee of his money’s safety, beside the rewards from Allah upon his help to others.

mortgage loan application

Argumentations of The Legal Status of Mortgage

For all people to understand the ruling of mortgaging in Islam, I will mention below the argumentations on which this legal status is based.

Allah The Exalted declared that,

وَإِن كُنتُمْ عَلَى سَفَرٍ وَلَمْ تَجِدُواْ كَاتِبًا فَرِهَانٌ مَّقْبُوضَةٌ

“If ye are on a journey, and cannot find a scribe, a pledge with possession (may serve the purpose).” (Al Baqara/The Cow: 283)

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Ruling of Arisan


What is the ruling of arisan, i.e. regular social gathering whose members contribute to and take turns at winning an aggregate sum of money?


Arisan, defined as numbers of people agreed to collect similar sum of money every month. The total money will be given to each member of the group in turns, until all of the members (ever) get it. This is a form of debt and credit in helping the needy and is a kind of good manner.

Arisan is included in debt and credit transaction because the one who get the money wants to spend the money to afford various needs, and then give it back exactly as the sum he received.

ruling of arisan

It is not appropriate to categorized arisan in the form of exchanging money for money, because if it is so, what benefits will the money seller acquired after he sold his money without cash -payment, over a year, and when it was returned to him, the amount is exactly as before? It is known that no one would do such thing, thus, arisan is a type of debt and credit, which based on social motives.

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Abolishment of Debt by Debt in Islam


In Islamic Economy, there is a terminology of “muqashshah”, which in Arabic etymology means, when  someone, Mr. A for example, indebted to Mr. B, while B in the same time indebted to him the similar amount of money. In terminology point of view, muqashshah means the consideration of abolishment of A’s debt to B, since B also have debt on him. Thus, muqashshah is a one of the way to pay someone’s debt. Ibnu Jizzi, a scholar of Maliki, stated that, “Muqashshah is abolishing debt by debt.”

The Difference between Muqashshah and Ibra’

In Arabic etymology, ibra’ (the abolishment of debt) means cleaning, purifying, and being away from something. Terminologically, Ibra’ is the abolishment of other people’s debt. Ibra’ differs from muqashshah, in a way that muqashshah is an abolishment of debt by compensation, while ibra’ does not require any of it.

abolishment of debt by debt in islam

The Ruling of Muqashshah

Muqashshah, as one could see, is legalized in Sharia by some argumentations and by logical reason. In a hadeeth, Ibn Umar once told The Prophet Shallallaahu ‘alayh wa Sallam, “O The Messenger of Allah, hold a second, I want to ask you question. I sold a camel in Baqi’, and the price was set using dinar, but the payment I got was in the form of dirham. Sometimes the price was set using dirham, but what I received was dinar. I took this from that, and I paid by this.” The Messenger of Allah replied,

لَا بَأْسَ أَنْ تَأْخُذَهَا بِسِعْرِ يَوْمِهَا مَا لَمْ تَفْتَرِقَا وَبَيْنَكُمَا شَيْءٌ

“It is alright for you to take it, but with the current price (of that day), and with the requirement that before you left them, all parties have already received their rights.” (Collected by Abu Daud, no. 3354; but the status is weak according to Al Albanee)

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Questions and Answers: Lottery


Some Shopping centers put a hidden number in one of their products. And whoever coincidently find that number, will be rewarded. This strategy is aimed to increase their sales. Is this strategy legal to the law?


It is widely known that some manufacturer of certain packed beverages hide a number among a hundred or two of their products, and whoever find it, will be given some prizes. As the result, lots of people buy the products altogether (while actually they do not need it), hoping to find the hidden number. Even worse, there are people who bought a hundred packs of certain beverage, opened it one by one and discarded the beverage, only because they hope to find number and win the prize.

Furthermore, many people, who were lured to buy the products, were only get the number after they had bought for about a hundred packs, more or less.

Lottery - Question and Answer

This strategy certainly resembles gambling. In this trick, consumers were absent-mindedly swayed to buy the beverage, while it was useless to them or the price was way too high. Thus, it is considered as taking (eating) other people’s wealth illegally, and due to that, is prohibited.

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Admonition to Muslim Entrepreneurs

Brothers, let us muse about decrees of Allah The Exalted below, to understand and to apply it, and to make it as provisions in business, to seize the happiness and real success in our life, insha Allah.

“Know ye (all), that the life of this world is but play and amusement, pomp and mutual boasting and multiplying (in rivalry) among yourselves, riches and children: Here is a similitude: how rain and the growth which it brings forth, delight (the hearts) of the tillers; soon it withers; thou wilt see it grow yellow; then it becomes dry and crumbles away. But in the Hereafter is a Penalty severe (for the devotees of wrong) And Forgiveness from Allah and (His) Good Pleasure (for the devotees of Allah). And what is the life of this world, but goods and chattels of deception?” (Al Hadid: 20)

muslim entrepreneur

“Fair in the eyes of men is the love of things they covet: women and sons; heaped-up hoards of gold and silver; horses branded (for blood and excellence); and (wealth of) cattle and well-tilled land. Such are the possessions of this world’s life; but in nearness to Allah is the best of the goals (to return to)” (Ali Imran: 14)

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