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Receiving Interest from a Welfare Trust

Answered as per Hanafi Fiqh by DarulIftaBirmingham

A Welfare Trust has been established for the welfare of retired employees. It gets money from individuals or group of people for a fixed duration of two or five years and in turn, gives interest to the investor on six monthly bases on fixed terms. The organization does not give loan to any individual or to any organization but invests amount in certain welfare projects and factories. Is interest given by this trust allowed? And does it fall under Riba? 


In the name of Allah, the most Beneficent, the most Merciful.

In the aforementioned scenario, the interest given by such a trust will not be permissible for the investors to take.

Hadiths regarding the severity of taking interest can be found on the following link:


Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham.

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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