Taking an interest bearing loan to start a business

Answered according to Hanafi Fiqh by Muftionline.co.za

Q: I want to start the business with my friend. We live in India. I want to have clarification with following points

1. Can I start a business by taking loan based on interest?

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2. If above thing is not possible then is it OK if my partners take loan and I restrain from it?

3. Is it ok if I work in their (my partners firm) which takes loans and take my share of profit as employee?

I wanted to have clarification because in any way the firm in which I am working currently has taken loan from banks for its functioning.



1. No.

2,3. Both are wrong.

4. The operation is corrupt. However, the wage is permissible for you. Rather look for a place that is more careful in this regard.

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)