I am participating with 12 people in a collectivity where each one of us pay 1666 each month & then we gather all the money (20 thousand) & give them all to one of the participants, each participant gets a month turn. Each participant has a turn only one month to get 20 thousand
I can’t explain it properly but I am sure you understand it. My question is: my turn is on October to get 20 thousand, but I have many debts to people that are due before October. One of the participants offered to give me his turn on April and take my turn on October in return he asked for 4 thousand more from me, it is ok with me because if I get the money on April it will make approximate benefit of 4 thousand, and he also will lose that benefit because he delayed the cash till October, also I will pay my debts on time or else I might get into trouble and maybe jail, maybe no jail also, I am not sure yet. Is it halal?
I can’t explain it properly but I am sure you understand it. My question is: my turn is on October to get 20 thousand, but I have many debts to people that are due before October. One of the participants offered to give me his turn on April and take my turn on October in return he asked for 4 thousand more from me, it is ok with me because if I get the money on April it will make approximate benefit of 4 thousand, and he also will lose that benefit because he delayed the cash till October, also I will pay my debts on time or else I might get into trouble and maybe jail, maybe no jail also, I am not sure yet. Is it halal?
بسم الله الرحمن الرحيم
(Fatwa: 260/265/N=01/1435)
The dealing which you want to do with your friend with 4 thousand extra amount to change the turn is interest based dealing without any doubt. Hence it is not lawful in any way. The holy Prophet Muhammad (صلى الله عليه وسلم) has cursed those who take and give interest. (Muslim: Vol. 2, p 17)
As far as the matter of paying the debt is concerned you should sell such things which are not necessary for you and pay your debt off. And you should avoid completely from interest based loan.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband