Borrowing money to start a bussiness

Q: I would like to know if I want to start a business which costs 30000 but don’t have enough money. Can I tell my cousin lend me eg. 15000 and tell him to invest 15000 and we go 50/50 and will pay him from my part of profits. Is it jaaiz? Can Mufti Saheb give reason also?

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A: If he is lending you the money then it is now your money for which he is not entitled to any share in the profits. You will only pay him the amount he loaned to you. And if he is investing the money then both of you will share the profits according to mutual agreement and share the loss in proportion to the amounts invested by each person.

And Allah Ta’ala (الله تعالى) knows best.

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)