Home » Hanafi Fiqh » Askimam.org » Money is borrowed for business investment. No fixed time for repayment is made. Payback an X amount per week for as long as capital sum not paid is the condition as profit. Is this allowed in Islam.

Money is borrowed for business investment. No fixed time for repayment is made. Payback an X amount per week for as long as capital sum not paid is the condition as profit. Is this allowed in Islam.

Answered as per Hanafi Fiqh by Askimam.org

Amount borrowed R42000. Pay R500 per week as “PROFIT”. Time when money to be paid back not set. Can Muslims enter into transactions like this? (R = Rand, South African Currency)

Answer

The weekly amount of R500 will be payment towards the loan of R42000. It is
not a profit. It is not permissible to demand or pay anything in excess to
R42000 as that will be interest. Rasulullah (SAW) SAID, every loan that
draws a benefit will be interest and haram.

Was salaam

Mufti Ebrahim Desai
FATWA DEPT

Original Source Link

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

Read answers with similar topics: