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Is it permissible to start a business of connecting lenders and borrowers?

If someone wants to start a business in US of connecting lenders and borrowers and facilitate their loan and payback transactions like paperwork, transferring money from and to accounts etc. In return business will make money by charging a fee (set percentage of loan amount) from both parties.

Lender may or may not charge interest to borrowers.

Is this kind of business or working for that kind of business allowed?


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

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

It is not permissible to be an agent in an interest bearing loan. Consider the following narration: 

عَنْ جَابِرٍ، قَالَ: «لَعَنَ رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ آكِلَ الرِّبَا، وَمُؤْكِلَهُ، وَكَاتِبَهُ، وَشَاهِدَيْهِ»، وَقَالَ: «هُمْ سَوَاءٌ»

صحيح مسلم (3/ 1219)

“The Prophet (sallallahu alayhi wa sallam)  cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: they are all equal” (Sahih Muslim, v3, p1219.

One may be an agent for a debtor to arrange an interest free loan and charge a service fee to the debtor. We do not see why the creditor of an interest free loan will pay the agent a fee to give a loan. 

And Allah Ta’āla Knows Best

Hafizurrahman Fatehmahomed 

Student Darul Iftaa

Checked and Approved by,
Mufti Ebrahim Desai.





This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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