Q: I am running a business of supplies and transportation. One of my friends is interested to invest with me in a car. He wants to invest ten lac rupees for five years on a profit ratio of rs. 1500 per month. Is it permissible or is there any restriction in such an investment?
He will receive a fixed amount of rupees (15000) on his investment and if there will be any loss or damage of the car, the insurance company or myself will bear the financial loss on the car. What will be the Islamic ruling in this condition?
A: To stipulate the amount is incorrect. This amounts to interest. You should stipulate a percentage of the profit.
And Allah Ta’ala (الله تعالى) knows best.
Mufti Ebrahim Salejee (Isipingo Beach)