Interest Archives - IslamQA

Find answers to your Islamic questions 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.

Disposing of interest money

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Q: How should interest money be disposed of? 1. Is tamleek (passing of ownership) necessary i.e. does it have to be given to an individual person or can it be given to madaaris or for digging of wells, etc.? 2. Can it be given to non Muslims? 3. How poor must a person be to… read more »

Charging a loan process amount

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Q: When giving a loan without interest, we charge a loan process amount. Is this haraam or not? A: Obviously it is haraam. And Allah Ta’ala (الله تعالى) knows best.   Answered by: Mufti Ebrahim Salejee (Isipingo Beach) Source

Third party insurance

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Q: A person wishes to take out third-party insurance. He claims that this form of insurance is permissible because the insurance company will not pay him anything in the event of an accident but will rather pay out the third party. Is third party insurance permissible? A: All forms of insurance are haraam due to the elements… read more »

Earnings of an insurance broker

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Q: My father works in an insurance company which is being run by Muslims and follows Muslim laws. He himself is an insurance agent who does insurance of different people and the more people participate, the more commission he gets. I want to know whether the money he earns is considered halal? Because the insurance… read more »

Disability insurance

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Q: Is an income benefit/provider insurance policy allowed whereby one will receive an income if disabled and cannot work. At the age of retirement the policy will lapse with no benefit. A: All forms of insurance are haraam and impermissible, since they contain the elements of interest and gambling. And Allah Ta’ala (الله تعالى) knows… read more »

Interest money

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Q: I want to apply to study in Canada and for this purpose I need a GIC certificate. A GIC is an account which I will open in a Canadian bank to show that I can bear their living expenses. When I go to Canada, they will refund me my funds within a given period… read more »