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Can 1-1.5% interest be charged on a Muslim loan?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
Asslam/kum janab my question is: i m running a sociti{Muslim fund} last two year n i m paying its expence myself but now i m anable to bear its i want know can i start the work (i have mortage the jwellry of people and give him mony taking some facility charge than i could bear its expence if i will earned profit,i wud expence on poor person wt it wud be haram? {i will take charge 1% or 1.5% allthough market rate is 5to 10% many our muslim brother is taking from other palece in compelson i want help him plz sure give my answer zajahakllah

Answer

(Fatwa: 1777/1332/D=1431)

What work do you want to start, write it in detail?

Taking 1 or 1.5 % profit will also be counted interest. You can take the reasonable charge of recording the dealing of debt.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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