All About the Fatwa

Fatwa developed early on in the evolution of Islam. It came as a means of interpreting questions pertaining to following Sharia Law or Islamic Law. In simple terms, it’s a legal opinion issued by a mufti and centers around Islamic Law and how it relates to the whole Islamic loan process that forbids Riba or making money from interest on loans.

The Origins

The origins of these Fatwas are different than pronouncements that come from lawyers or judges. Although in this case, they concern themselves with the Islamic finance process. Based on the evidence they have to support their claims, these learned scholars create educated conclusions.

Though, in some cases, there is even conflicting evidence given to support them. Because Islam is not very hierarchical in structure, even the fatwas, or Fatawah, expressed about Islamic finance and Sharia law are not always consistent.

Nature of The Fatwa

However, lack of information influences the nature of these Fatwas as they apply to take out a loan or mortgage to buy a house that deals with a bank or other financial institution that charges interest. It’s referenced in Surah At-Talaq 65:2-3 and used by muftis to demonstrate the evils and what can befall an individual if they take this course of action.
When a Muslim decides to follow any particular Mufti, they generally consider their fatwa binding. Whether they pertain to Islamic finance or not, they hold fast to these Fatwas.

Several Steps

Recently, contemporary Muftis took steps to make the modern Sharia law process easier to understand. Moreso regarding Islamic financial matters, as Muslim finance becomes a global force. These fatwas need strong support from readily-available evidence. Additionally, the muftis that issued them must defend these Fatwas when needed.
As these rulings pertain to Islamic finance, consensus shows that all these fatwas require careful thought. Reversals of these fatwas could lead to disruptions in the Islamic banking sector in general that could adversely affect Islamic loans and other financial products.