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Muslim manager advising the company to take out interest bearing loans

Answered according to Hanafi Fiqh by Muftionline.co.za

Q: I am working as a Finance Manager in a company. I perform various duties of my job like Financial Planning Analysis.., and one such duty is to advise the company on raising of money for the business and I advised to raise from equity and debt (loans)

On my advice the company takes small amounts of loans and pays interest (riba). It gets many benefits like tax deduction on interest paid and other benefits… But the company has to pay interest (Riba).

Since India is Darul Harb, I have no choice of interest free loans. Moreover I am just advising and it is my job. I am not paying or using or consuming riba in my daily life as it is haram.

1. Please tell me If I am doing any sin or will I be punished for just advising the company? Because I have heard Hadees that all those persons are sinful if they are involved in riba related transactions and riba is haram.

2. Is my job and salary halal?

3. If I am earning 1000 Rupees for 10 hours daily and I performed this riba Advise work for 1 Hour and Earned 100 Rupees, is it compulsory to donate that 1 hour salary of 100 Rupees as charity ?

4. Can I perform all my other duties

Bismillaah

A:

1. Advising towards haraam is like engaging in haraam.

2. For the halaal work that you are doing your salary is halaal and in proportion to the haraam that you are doing your salary is haraam.

3. Yes, give it to some poor person. Make taubah and try your best to leave this haraam work.

4. Yes, all the halaal duties can be done.

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

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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