What are the rulings on loans in these situations?

Assalaamu Alaikum,

I would like to know if the following are permissible in Islam please:

  1. Is it permissible to use money borrowed from a non-Muslim person who took a loan to lend it to the Muslim person?
  2. Is it permissible for a Muslim person to act as a guarantor for a loan that a non-Muslim is taking?

Wa Alaikum Assalaam,

الجواب و بالله التوفيق

  1. It is permissible for one to use money borrowed from a non-Muslim who took a loan to lend it to the Muslim.
  1. If the non-Muslim is taking a loan which requires him to pay interest, then the Muslim cannot become a guarantor for such a loan. However, if the loan is free from interest, then the Muslim person can act as a guarantor for it.

And Allah Knows Best.

Mufti Waseem Khan.

31/10/16.