Home » Hanafi Fiqh » Askimam.org » I need a to take a loan to start a business unfortunately most banks deal in Riba

I need a to take a loan to start a business unfortunately most banks deal in Riba

Answered as per Hanafi Fiqh by Askimam.org

I need a to take a loan to start a business unfortunataly most banks deal in riba and to tke a loan privatly from a relitive ect is difficult as it is alarge sum what options do have do any banks offer shariah compliant loan what about albaraka bank live in south africa


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

As-salāmu ‘alaykumwa-rahmatullāhiwa-barakātuh.

We make dua Allah open the doors of halal and pure sustenance for you. Aameen.

You should consider obtaining a small loan rather than a big loan and start a small business rather than a big business. Insha-Allah Allah will put barakah in your efforts.

If you wish to obtain a bigger capital, you may consider proposing the concept of Mudarabah or Musharakah to your family and friends.

In Mudarabah one person makes a capital contribution and the other does the labour. Both parties agree to share percentage of the profit. If there is a loss, the financier bears the loss.

In Musharakah, both parties make capital contribution. The contribution could vary on both sides. They may mutually agree on a percentage of the profit. The profit do not have to be in proportion to the capital contribution. However, if there are losses, they will be according to the capital contribution. (1)

Albarakah bank may also propose the above two options. You may obtain their contracts and send it to us for our review. 

 We also advise you to read the following dua regularly.

اللَّهُمَّ اكْفِنِي بِحَلالِكَ عَنْ حَرَامِكَ، وَأَغْنِنِي بِفَضْلِكَ عَمَّنْ سِوَاكَ

Transliteration: Allāhummak fini bihalalika an haramika, wa’agnini bifadhlika amman siwaka.

Translation: Oh Allah make your halal provision sufficient for me so that I stay away from haram and enrich me from your favors.

And Allah Ta’āla Knows Best

Zakir Husain

Student DarulIftaa
Michigan, U.S.A

Checked and Approved by,
Mufti Ebrahim Desai.

  • An introduction to Islamic Finance (Of Hadhrat Mufti Taqi Usmani Sahib: See page 31, 47).

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