Question:

Assalamu-alaikum Mufti saab,
My question is about bank offering certain loan in cash or purchases based on certain fees for facility with 0% interest for limited time.

My bank offered me to transfer cash to my current account against my credit card limit at 0% interest if returned within 12 months. However, they also charge a fee of 2.99% of the amount transfered to my account from credit card.

If I have intention to return money in time so no interest need to be paid, then is this transcation Halal. based on the fact that I will be paying a fee which is percentage of the amount taken.

If above is Halal, then can someone take advantage of shifting its credit card loan from one card to another using the incentive of 0% interest for fixed time against 2.99% fee.

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Any amount received by the creditor from the debtor in excess to the principal amount is interest. Hence, the 2.99% fee is interest and thus Haram.

And Allah Ta’āla Knows Best

(Mufti) Abdul Azeem bin Abdur Rahman