Sood On Credit Card Cash Installment Plan
Hello Muhammad, I am not a scholar but a student. I have watched thousands of videos from respected scholars like Ghamidi Sahib, on all matters of life and studied Quran very carefully. In my opinion, the bank may be renaming interest, “sood” as “handling charges” to make it more acceptable for Muslims. Here is how to figure out if it is interest or ligitimate handling charges. If the handling charges are somewhat proportional to the amount you borrow, then it is very likely that it is interest disguised as handling charges. On the other hand, if the handling charges are exactly the same regardless of the amount borrowed then it is likely to be the ligitimate cost of handling account. In any case taking “sood” is the sin that Quran describes. Giving Sood is a lesser sin in case you are borrowing money without having a pressing need to borrow. In this case you are assisting an illigitimate business and promoting the practice of Sood. If you are borrowing money for a pressing need and you have exhausted all other possible options, then I do not think it is a sin on your behalf for paying Sood. Also I believe that the greater sin on behalf of Sood taker is if the Sood percentage is extremely high and interest is compounded. Normal Sood with reasonable rate and without compounding may likely be a lesser sin. I am not sure. I am still researching that part