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Financial Analyst Calculating or Forecasting Interest

Answered as per Hanafi Fiqh by Mathabah.org

Answered by Shaykh Yūsuf Badāt


Is it OK to work as a financial analyst who calculates the interest amount of loans etc.?


بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allāh, Most Gracious, Most Merciful.

Jazāk Allāh Khayr/ Thank you for contacting Mathabah.

Usury (interest) is forbidden in Islam. Therefore, witnessing, documenting or calculating a current or upcoming interest-based transaction is prohibited. Usury (ribā) is an oppressive system wherein lenders keep making money while the needy impoverished clients keep suffering with amounts that are unbearable and unjustified. Islam prohibits being part of any kind of such oppression.  

There is a fiqh position that a person documenting or accounting a usury based transaction that occurred in the past, is not detestable or impermissible, as this is only looking at a past transaction rather than being part of a current forbidden transaction. – (See: Fatḥ Al-Bārī, Vol 4, Page 314, Dar Al-Ma’arifah[1], Taqrīr Tirmidhī Vol 1, Page 39, Memon Islamic Books[2])

“Allāh has permitted trade and has forbidden interest.” – (Qur’ān 2:275)[3]

“Cooperate in righteousness and piety, but do not cooperate in sin and transgression. Be mindful of Allāh.” – (Qur’ān 5:2)[4]

“Allāh’s Messenger (peace and blessings be upon him) cursed the accepter of interest and its payer, and one who records it, and the two witnesses [of the ribā transaction], and he said, “They are all equal [in sin].” – (Ṣaḥīḥ Muslim 1598)[5]

Only Allāh knows best.

[1] لِإِعَانَتِهِمَا لِلْآكِلِ عَلَى ذَلِكَ وَهَذَا إِنَّمَا يَقَعُ عَلَى مَنْ وَاطَأَ صَاحِبَ الرِّبَا عَلَيْهِ فَأَمَّا مَنْ كَتَبَهُ أَوْ شَهِدَ الْقِصَّةَ لِيَشْهَدَ بِهَا عَلَى مَا هِيَ عَلَيْهِ لِيَعْمَلَ فِيهَا بِالْحَقِّ فَهَذَا جَمِيلُ الْقَصْدِ لَا يَدْخُلُ فِي الْوَعِيدِ الْمَذْكُورِ وَإِنَّمَا يَدْخُلُ فِيهِ مَنْ أَعَانَ صَاحِبَ الرِّبَا بِكِتَابَتِهِ وَشَهَادَتِهِ َ – فتح الباري ج٤/ ص٣١٤ دار المعرفة

[2] Financial Analyst Calculating or Forecasting Interest

[3] وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا – البقرة ٢٧٥

[4]   وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَىٰ ۖ وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ ۚ وَاتَّقُوا اللَّهَ – المائدة ٢

[5] عَنْ جَابِرٍ قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ – مسلم ١٥٩٨

This answer was collected from Mathabah.org. It’s an Islamic educational institute based in Canada. The questions are generally answered by Sheikh Yusuf Badat and Sheikh Omar Subedar.

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