Disposal of interest money

Question ID: 28672

As-salaamu-alaikum respected Mufti

My question relates to the use or disposal of interest money. I have read one of the articles on this website under the Business section dealing with the use or disposal of interest money. I am not very well informed in this regard, & I have not been able to get an answer that sufficiently explains the manner in which one may dispose of interest money, & in which avenues is it permissible to use. I have no intention of using interest money for my personal gain or benefit, as I am well aware of the warnings & the injuctions in the Quran. I have accrued a certain amount of interest in my bank account, & I have taken it out of my account but I do not truly know how to dispose of it, & upon whom should I or can I expend it on. My question in particular is this: Can I use interest money to pay my (poor) niece’s school fees? This is a government school, & I understand that it is the right of every child in the country to receive an education. My niece’s parents, i.e. my sister & her husband, are not well to do financially. In addition, my niece does not live with her parents. She lives with my mother who is a pensioner. My sister & her husband have not shown any interest is paying my nieces school fees & my mother has thus asked me to help. The school in question will not consider my niece’s unfavourable circumstances, thus they would not waiver or reduce her fees. To my understanding & based on the article that I read on this website, interest money can be given to the poor, muslim or non-muslim. Please clarify this matter for me. Also, I would truly appreciate it if you could enlighten me regarding the disposal or permissible use of interest money in general.

I anxiously await your response, & I thank you for your time. May Allah continue to bless you with beneficial knowledge.

Brother Naeem

Marked as spam
Asked on June 3, 2008 12:00 am
Private answer
Interest may be used to pay all taxes and non-refundable vat
Marked as spam
Answered on June 3, 2008 12:00 am