Question
I intend purchasing a house via the FNB's Islamic system. The conditions are as follows: * It is done on the Diminishing Musharaka Islamic principle. * It is an amortizing facility. * The profit rate and monthly repayments are fixed for 12 months. * You can only add lumpsums on anniversary (every 12 months). * You cannot settle and close the facility within the first 2 years. * There is no flexi / access facility. * Should you wish to access the equity in your bond / property, you can apply for a readvance and / or further loan (formal credit process). Will it be permissible?
Answer
The deal is haraam. The conditions are stupid and haraam. In the Shariah there is no such concept as 'diminishing musharaka'. This is a deceptive terms to bamboozle the ignorant and unwary. Every stipulation is haraam.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 27 No 10
- PDF page
- 24
Appears under Questions and Answers (approximate).