Masjid with interest

[Beardo]

Ya Allah...help us all...

This masjid founded itself on interest. They are now in $2.2 million debt. I saw their financial statement. Every month, they're responsible to pay $10,000. $2000 of which is for principle, and $8000 for interest.

First question (for our accountants), does that mean the interest is 80%?!?!

Second question, -_- What do we do in such a case? A masid can't be removed, can it?

[Dagless]

does that mean the interest is 80%?!?!

I don't know about the 80% because interests rates change and it also depends on how much they pay per month. If they pay more then the interest maybe less.

[Cabdullahi]

only one solution = all the people who hold managerial positions must buy a one way ticket to Pakistan and stay there for 5 years before coming back to the US

they need to lay low for awhile

[StudentIII]

Interest us based on the principle. So $10,000 of 2.2 million is .45% in interest. I'm not familiar with interest rates on large loans, but thats sounds very low. I thought most interest rates for a large loan were around 5%. I may be wrong.

Perhaps you guys can contact a Muslim bank and see if they would be willing to refinance. Or perhaps you can ask people who attend the Masjid for a Qada Hafsa (sp?), which is basically a loan given by them thats repaid by the masjid without interest.

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[ardianto]

It's look like the masjid took US$ 435,000 loan, with 22.5% per year interest, but in 18 years installment period ..... flat !

Is it right, brother Beardo ?.