The company will give him a loan equal to the price of what he wants to buy; can he tell them a figure greater than the real price, so that he may take a bigger loan?
Question: 182992
We can borrow money from the company in accordance with Islamic sharia. For example, they will give us six hundred and fifty thousand, of which two hundred thousand is to help me to buy land. But I want to buy land for one hundred and fifty thousand, for example, but I have made an agreement with the seller of the land that we will register it as costing two hundred thousand riyals, so that I can get help for the full amount. Please note that if I register it as costing one hundred and fifty thousand, I will get help only for that amount.
Is it permissible for me to tell them a figure that is greater than the real price so that I can get help for the full amount?
Praise be to Allah, and peace and blessings be upon the Messenger of Allah and his family.
What you must do is fulfil the conditions stipulated by the company from
which you are borrowing the money, and you should spend the entire amount
that you borrow on purchasing the land. As for purchasing the land with some
of that money, as mentioned in the question, then writing in the contract
that you bought it for more than it really cost, this is not permissible,
because it comes under the heading of deceit, cheating and lying, and it is
breaking the condition that was stipulated. The basic principle is that you
must fulfil the conditions that are stipulated between you and the company.
It was narrated that Abu Hurayrah (may Allah be pleased with him) said: The
Messenger of Allah (blessings and peace of Allah be upon him) said: “The
Muslims are bound by their conditions.” Narrated by Abu Dawood (3594);
classed as saheeh by al-Albaani in Saheeh Abi Dawood.
In al-Mawsoo‘ah al-Fiqhiyyah
(35/238) it says: A person may commit himself to something, so that becomes
binding upon him in shar‘i terms, so long as it is not contrary to Islamic
teachings. In other words, Islam regards his committing himself to it as
binding. That includes contracts; if two people make a contract between
themselves, the rulings thereon become binding on them, as in the case of a
sales contract, for example. It makes it binding upon them to transfer
ownership of the sold item to the purchaser, and to transfer ownership of
the price to the seller. Another example is an employment contract, which
makes it binding upon the hired worker to do the work, and it makes it
binding upon the one who hired him to pay him his wages. This also applies
to any valid condition that the person who enters into the contract takes
upon himself; it becomes binding upon him. That is because Allah, may He be
exalted, says (interpretation of the meaning): “O you who believe!
Fulfill (your) obligations” [al-Maa’idah 5:1]. And the Prophet
(blessings and peace of Allah be upon him) said: “The Muslims are bound by
their conditions.” End quote.
And Allah knows best.
Source:
Islam Q&A
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