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Fatwa CenterTaking a line of credit to help an indebted friend
Question
O noble shaykh, Assalamu alaikum warahmatullah. One of my friends is totally drowned under interest(riba). He made this much loan because of his education. He finished his graduation 4 years before. Still he is paying off the loan that he made. The irony is, he is still paying the interest of the loan and he has been paying for more than 4 years. He is also doing a job and he has 3 kids and his wife. His expenditure is increasing day by day but he has no way of getting out of that loan. He recently spoke with bank they told him that if he gets a middle man with good credit history who will take a "line of credit"(it's also interest but it's low) for that amount of money and pay off the loan for him then he will just pay off to that person's line of credit gradually. That person will basically not pay anything from his own and that persons credit history won't be affected. That persons goodwill will only be used just to accept the line of credit. My friend wants me to be the middle man so that I take the line of credit from the bank and he will pay off the loan with less interest to the bank. My question is will I be a sinner if I do this even though I am not taking or giving any interest - my goodwill will be used only and it will be very beneficiary for my friend and he will get rid of loan/interest as soon as possible and he will run his family properly. Please advise me if I should do this. JazakAllahu khair.
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
If there is really a confirmed benefit in what you have mentioned, which is to decrease the interests of the loan which your friend is obliged to pay, and doing so does not necessitate being obliged to pay Riba (interest or usury) from your side, then we hope that you are permitted to take a line of credit for the loan, but on the condition that your friend repents to Allaah for borrowing money with interest.
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