Loaning money on interest

Answered according to Hanafi Fiqh by Muftionline.co.za

Q: Could you please explain to me what is interest, riba and usury. If one has the talent to do a halal business (by Allah) and no money, and other has money but he can’t do business, the one who is giving the money to the first person for the business and asking him to give a profit of 50% and at last he should return his money. Does this come under interest/riba/usuary. If yes then how should the business situation be dealt with. What does one do if one did that, and falled in a loss.

Bismillaah

A: This enters under the definition of riba. Riba refers to any conditional excess that is charged on a deferred payment over and above the loan amount taken. For further details refer to http://muftionline.co.za/node/21365

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

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

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