Clients intentions to seek a conventional loan

Answered according to Hanafi Fiqh by Askimam.org

With the blessing of Allah I am having Chartered Accountants profession. I am facing following problems. Please guide me in the context of Shariat ( Hanafi ). I have read some of the Fatwas regarding Chartered Accountants still I have some question as follows.

As according to Hadis pak paying receiving and assisting to interest bearing loan is prohibited( Mafhoom). As per your fatawas recording of book entries by accountants is not prohibited if he is not directly involve in transaction and not presented while transaction took place.

While practicing many of the muslim and non muslim clients come to prepare financial statements to obtain loan from bank. And they specifically ask to prepare such statements which can be accepted by financial institutions and so they can sanction loan.

  1. We do not have any connection with bank.
  2. We prepare Financial statements according to the clients requirement. ( and requirement is Loan should be sanction on the basis of such statement)
  3. We specifically mention in the end of Balance sheet and Profit and loss Accounts that “ Prepare as per information given to us”
  4.  We do not take any responsibility that the loan will be sanctioned as these statements are just part of the document required for sanctioning loan. But these are the major proof that business is running in profit.
  5. We are not presented at any time in process of sanctioning loan. 

In similar way some clients want to start new business and banks ask them for project report. In That report we project the financial position and repayment of loan from business If business run successfully as planned.

 So the question is considering above facts whether the preparation of financial statement comes under the ambit of Prohibition of hadis? And the fees charged for such service is Halal?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

You state that you assist your clients to prepare financial statements to sanction their financial loan applications. You also state that the preparation of such statements play a major role in procuring the loan. Preparing financial statements for clients is a common function of accountants. If you are aware that the client seeks such work for the purposes of procuring a conventional interest bearing loan, then such a job profile will be Makrooh (reprehensible). However if you are not aware of the clients intentions to seek a conventional loan, then the job profile is permissible.

 

Kindly refer to the following Fatawa for more details: http://www.askimam.org/public/question_detail/23092

 

And Allah Ta’āla Knows Best

Ismail Desai,

Darul Iftaa

Checked and Approved,

Mufti Ebrahim Desai.

 

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