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Working in a Credit Union verses a BANK

Answered as per Hanafi Fiqh by Jamia Binoria

Assalam Aliakum wr wb, What is the Islamic jurisprudence for working in a Credit Union verses a BANK. In theory Credit Union is created within an organization or a company and is solely for its works and employees. It is referred as ‘not for profit organization’. Is it permissible for a IT System Administrator /Engineer to work and assist the Credit Union organization with their entire IT needs. I wont be doing any finance related task at all but would be primarily configuring , testing devices that are meant for the security for this organization. for your reference an example of credit union and mission and how it differs can be seen at http://www.chevronfcu.org/AboutUs/Pages/AboutUs.aspx JazkaALLAH ho Khair, Asim Zafir.

الجواب حامدا و مصلیا

In the name of Allah, the Most Beneficent and the Most Merciful
On perusing the introduction page of the referred Credit Union it is noted that activities of this institute are inclusive of interest based transactions. Therefore working in this institute as IT System Administrator/Engineer is equivalent to assisting in Interest base transaction which is impermissible and Haram.
However employment in this type of institutes where duty does not involved directly in interest based transactions (writing, reading etc), such as working as security guard for the institute etc. is permissible.

Allah knows best.

This Q&A was indexed from the official english fatwa portal of Jamia Binoria. It is an Islamic educational institute in Karachi, Pakistan.

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