Is 0% APR Halal or Not?
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In general, a 0% APR (Annual Percentage Rate) loan is considered permissible in Islamic finance because it does not involve charging interest. However, it’s crucial to review the terms and conditions of the loan, as some lenders might include additional fees or penalties, which could render the loan non-halal.
If the loan is truly interest-free and does not incur any extra charges or penalties, then it is considered halal. But, one should be cautious and ensure there are no hidden costs or conditions that could make the loan impermissible.
And Allah knows best.
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