باسم الله، والحمد لله والصلاة والسلام على رسول الله

Wa ʿalaykum as-salām wa raḥmatullāhi wa barakātuh. May Allah reward you for your concern for what is halal and for your care for your daughter.

The general ruling on interest-based loans (ribā) is clear and applies to housing or other transactions.

Allah says:

وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا

“Allah has permitted trade and has forbidden ribā.”

(Surah al-Baqarah 2:275)

And He says:

فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ

“If you do not desist, then be informed of a war from Allah and His Messenger.”

(Surah al-Baqarah 2:279)

This applies to home loans, even if:

1. The intention is housing, not investment
2. Only one residence is being purchased
3. The borrower is not seeking wealth

Accordingly, our scholars state that:

1. High rent
2. Desire for stability
3. Concern for children’s future
4. Islamic finance being more expensive

do not in themselves reach the level of ḍarūrah (necessity) that permits ribā.

A necessity in Sharīʿah is defined as:

A situation where a person fears destruction, severe harm, or inability to survive without committing the prohibited act.

Owning a home, while highly beneficial, is not considered a necessity, because:

1. Renting remains a viable alternative
2. Shelter can generally be secured without ownership

Regarding taking life insurance for your daughter; commercial life insurance is also ḥarām, because it involves:

1. Ribā (in some applications)
2. Gharar (excessive uncertainty)
3. Gambling-like risk transfer

Allah Almighty reward you for your noble intentions. From an Islamic jurisprudence perspective, intentions, even if noble, do not change these sorts of rulings, for the Prophet ﷺ said:

«إِنَّ اللَّهَ طَيِّبٌ لَا يَقْبَلُ إِلَّا طَيِّبًا»

“Allah is Pure and accepts only what is pure.”

(Ṣaḥīḥ Muslim)

That said, please explore permissible alternatives that may achieve your goal without sin, such as:

1. Wasiyyah (Islamic will)
2. You may allocate up to one-third of your estate for your daughter beyond her inheritance share
3. This is strongly recommended
4. Saving and investing in halal avenues
5. Even small, consistent savings are barakah-filled
6. Trusts or savings accounts (ensuring that they are without interest, if there is any interest received is given away in charity)
7. Takaful (if genuinely cooperative and Shariah-compliant)
8. If available and authentic, it is permissible
9. Note: Many products are marketed as “Islamic” and should be scrutinised carefully
10. Reliance on Allah with responsible planning
11. Provision is from Allah, not insurance policies

Allah says:

وَمَا مِن دَابَّةٍ فِي الْأَرْضِ إِلَّا عَلَى اللَّهِ رِزْقُهَا

“There is no creature on earth except that upon Allah is its provision.”

(Surah Hūd 11:6)

Lastly, situations like this highlight the urgent need for accessible, genuinely Sharīʿah-compliant financial solutions that cater to real-life circumstances, especially for vulnerable individuals such as single parents, widows, and those without family support. Community leaders, professionals, investors, and institutions must work collectively to develop practical halal housing and protection mechanisms, reduce barriers to entry, and prioritise social need over profit. Facilitating lawful alternatives is not merely a financial exercise but a communal obligation founded by Islam, a manifestation of mercy, justice, and mutual support.

May Allah ease your affairs, place barakah in your income, protect your daughter, and grant you provision from places you never expected.

And Allah knows best.