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Dividends from a Credit Union

Answered as per Hanafi Fiqh by DarulUloomTT.net

Q. Are dividends halaal like the investments in Venture Credit Union?

A. I do not know about Venture Credit Union, however, I can give you a principle which you can use to judge the situation.

Dividends will be permissible if investments were made in a company or Business that deals in halaal products/transactions. As such, dividends will not be permissible if transactions were based on interest, or they were done on products that were not halaal in Islam.

Most of the Credit Unions put their monies in a fixed deposit (in banks) so that they may receive a return which they would normally divide as dividends to their clients. So, you need to be careful in this regard.

And Allah knows best.

Mufti Waseem Khan

This answer was collected from DarulUloomTT.net, which is operated under the supervision of Mufti Waseem Khan from Darul Uloom Trinidad and Tobago.

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