I own a new commercial building situated in a busy business area of Karachi. At the moment, my property is lying vacant and I have no use for it. I am being approached by several banking institutions who want to acquire my property on rent. I am confused about giving my property on rent to any bank or banking institution because I know that the whole banking system in Pakistan is based on Interest, which is Haram in Islam. My questions are :
Is it allowed in Islam to give my property on rent to a schedule Pakistani bank?; and
Is the rent paid by the bank to me, Halal for me?
Answer
I think giving your property to a bank is a way of cooperating with the institution in its riba-based business. One should avoid it under normal circumstances. The prophet, alaihissalaam, is reported to have said that the one who takes riba, his agent, the writer of contract, and witness are all involved in the crime of promoting riba. A similar thing could be said about someone who offers his building on rent to someone who does the business of charging riba.
If you are in a financially tight situation then giving your property on rent to a bank could be excusable in the eyes of the Almighty given your plight.