Q: Please assist help me understand the concept of helping someone to set up a business.
Person A helps person B by lending the person R 10 000 for a business. Person A wants R 15 000 after 3 years (R 10 000 as capital and R 5 000 as profit). This is purely money lent to another person. Is this ribah?
Person A buys a business for R 10 000 person B and then Person B pays off the R 10 000 (capital) + R 5000 (Profit) over 3 years. A business is bought and sold back to Person A. Is this Halaal?
a) This is pure riba.
b) If this business was sold with a profit then it is permissible.
And Allah Ta’ala (الله تعالى) knows best.
Mufti Ebrahim Salejee (Isipingo Beach)