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Interest Archives - IslamQA

This answer was collected from TheMufti.com, which is a fatwa portal managed by Mufti Ismaeel Bassa from South Africa.

Disposing off interest immediately

Answered by TheMufti.com

Q. I closed an interest bearing account which accumulated interest. Can I keep the interest money and give it in charity after 3 Months? A. The ruling regarding any Haraam wealth acquired including interest is that it must be returned to its original owner if possible. If it is not possible to return it to… read more »

Charging a profit on a loan

Answered by TheMufti.com

Q. Can you charge a profit on a loan? A. In Shariah, if a debtor takes a loan from a creditor whereby it is agreed that the debtor will pay back the creditor at a later date with an additional amount or rate, it will be tantamount to interest. Therefore, it is impermissible and Haraam to… read more »

Can profit be fixed in an investment?

Answered by TheMufti.com

Q. I invested R100 000 of stock in my friend’s business. My friend agreed to give me a fixed return on investment of R50 000 on R100 000 after selling the stock. At the end of it, I would receive R150 000 in total. Is this correct according to Shariah? A. The transaction in reference… read more »

Can an accountant apply for bank loans on behalf of his client?

Answered by TheMufti.com

Q. Can accountants apply for bank loans (interest chargeable) on behalf of clients? Can Accountants record bank loans and interest transactions in financial statements? A. In principle, active and direct participation in any unlawful venture is impermissible. Allah Ta’ala says, و لا تعاونوا على الإثم و العدوان(النساء:٢) Do not assist one another in sin and… read more »

Ruling on exchanging gold jewelry

Answered by TheMufti.com

Q. When I go for Umrah to Makkah, I take my gold and exchange it for gold at the jewellery shops. If I exchange my gold chain that weights 100 grams for a gold ring and gold bangle that weights 150 grams, is this correct Islamically? A. In terms of Shariah, if one is exchanging… read more »

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