Debt and Loan: Legitimacy of Ribā-Free Loan Institutions Investing Depositors’ Funds in Real Estate
Practical Laws of Islam as per the teachings of Imam Khamenei
Debt and Loan: Legitimacy of Ribā-Free Loan Institutions Investing Depositors’ Funds in Real Estate
English:
Question #1767:
Some ribā-free loan institutions deal in real estate. Since some depositors do not agree to their money being used for this purpose, is it permissible for such institutions to take possession of the deposited money? And are such dealings shar‘ī?
Answer #1767:
If the money was deposited in trust with these lending institutions to lend it to others, using it to buy real estate and other things is considered as fuḍūlī1 should be dependent on the owners’ approval. But if the money was lent to the institution, there is no objection to its officials buying real estate and other things according to their responsibilities.
-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Debt and Loan
Of a contract, e.g., a purchase or a marriage, concluded on behalf of somebody without their permission.