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Hanafi Fiqh

Investment Agent

Thank you muftisaab. So I have been trading stocks personally for a number of years, and always follow Islamic protocol. I am mindful of what industries I invest in, never going short on trades, mindful of debt ratios etc and alhamdulilah have had good success. This led me to wanting to grow my venture to open up the scalability of it and to start to do it on behalf of others. So I’ve approached friends and family initially, with the proposal that they invest their money with my limited business, and I trade on their behalf in a way that is similar to a fund, of course concentrating only on halal stocks. What I have offered to them is that they receive a X% return on their investment per annum, and If I manage to out perform X% on the market, whTever is in excess, is profit for myself as well, so that the arrangement is mutually beneficial. I have told them that if the year elapses and they request their money back, and the money is currently tied up in open investments in the market, I will honour their request from the pool of funds I have sitting on the side as liquidity, which remains untouched to underwrite any clients investment. I was wondering, mufti, whether this arrangement is permissible? And if it is not permissible, how I can adjust my business model in order to bring it into accordance to Islamic shariah. JazakAllah khair

Hanafi Fiqh

Premium Bonds – Prize bonds

Salaams,

I wanted to ask if the purchase of premium bonds is halal?

https://www.nsandi.com/
https://www.nsandi.com/products/premium-bonds

I have purchased premium bonds on the website above and occasionally I win money prizes in a month. I don’t win every month.

I wanted to know if it is halal to buy this sort of premium bonds?

If it is not permissible, I will take my investment out.

The prize wins that I have accumulated over the amount I have invested. Please can you advise what I do with that money?

I invested £5,000 initially. By winning the prizes in some months. That amount equals to £500. My investment now is £5,500. I have gained £500.

Can I give it as interest money to a poor Muslim country?
Can I give to a non Muslim charity?

Please advise.
Jzk

Hanafi Fiqh

Zakat and long term investment

I have an investment which i am unable to take funds out of and will only have access to the fund when it matures. I know I need to pay zakat on it but currently I do not have the funds to pay zakat on the funds.
Please can you advise:
1) Would I need to borrow or take a loan to pay the Zakat immediately.
2) Can someone else (family member) pay zakat from their money on my behalf?
3) Can the Zakat be paid in accruals after the investment matures? i.e after 5 years pay 12.5%.

Hanafi Fiqh

Permissibility of working in HR for a car finance company

I currently work as a HR professional and have been searching for a new role for sometime. I have been approached by a recruitment agency with regards to a potential new role. This role is a senior role to what I am currently doing. The title is HR Business Partner for a car finance company. My responsibilities would include talent management, delving into Employee Value Proposition, recruitment, onboarding, employee engagement, stake holder management and any change management. This role will be a hybrid role to work from home which I felt was appropriate as I would not be required to travel outside of the Shari boundaries for a female travelling alone. However, my concern is that whilst I will not have direct involvement in this, the business operates as a loan company (not a broker) allowing members of the public to in essence, borrow money (with interest) to purchase vehicles. The company is known as ‘Oodle Car Finance’ and the amount of interest applied would be in accordance to the results of an individuals credit rating. Hypothetically, if I were to be employed by this business, I would have no involvement with the day to day operations of the business, or witness any finance deals. My question is, based on the nature of the business and the suggested role, would it be permissible to work for this organisation?

Hanafi Fiqh

Zakaah and student finance debt

Assalamualykum,
If my total asset worth for Zakat is £5,000 and I have £9,250 student finance debt, would I pay no zakat as I am in overall negative equity? Or are we not able to include student finance debt in our calculations and so would pay zakat on £5,000

Jazakallah for your time

Hanafi Fiqh

Student Finance

Assalamualikum. Is student finance allowed for muslim to do a degree from university? And sometimes students are eligible to get bursaries like full fee , disable allowance, child care allowance or parent allowance , Are these permissible to take or not??
And if these are not allowed and someone has taken it what should they do now if they are in the middle Or end of their degree??

Hanafi Fiqh

Help 2 save scheme

Assalamualaikum wa.

I have been using the governments help 2 save scheme where the government gives you certain percentage of what you’ve saved as a bonus for using this scheme.

So how it works is that I am only allowed to save anything from £1 to max £50 per month over the course of 4 years. You earn your first bonus after the first 2 years and last bonus at the end of the 4th year and you can not use this scheme again. You are only allowed to use this once. I am allowed to withdraw money from my savings at any point however it will effect the final bonus I earn.

My question is, is this bonus considered as interest or gift and is it permissible or not?

Jazakallah,
Wassalam

Hanafi Fiqh

Borrowing from commercial banks

Assalamu’alikum wa’rehmatullah wa’barakatuhu

Auntie wanted to ask something about banking; few days back we bought some electronic goods on installment through my uncle working in a commercial bank, whatever amount or good received, legally is on his name. My uncle said to me is that it’s like installment process and whatever we are paying in extra is fixed profit not intrest and because of this we bought those stuffs and are now paying him the installments.

But now as I found out that getting anything from commercial bank is prohibited, wether it’s on installation on fixed profit, mortgage or anything.

My question is if someone has bought anything from bank and realized that it’s inappropriate and wanted to repent, what should one do in a situation like we’re in right now, we’re we have used the amount and now paying the installation, how can we get out of this situation.

Hanafi Fiqh

Credit card cashback/rewards/points permissible?

Assalamu alaykum wa rahmatullahee wa barakahtuh,

Sheikh, I was wondering if it is permissible to use a credit card to get the cash back/rewards/points benefits. I’ve seen people talk about using a credit card to spend money that they currently have and to then pay off the amount immediately. This way, they say that they avoid the interest and reap the cash back/rewards benefits.

Is this permissible? If so, what are the conditions of doing so?

Hanafi Fiqh

Zakat on investments and shares

Assalamu alaikum
1)I have invested some amount on a company since 2019 on profit share basis . I have not received any profit in my hand till now even though profit is reflecting in accounting. Should i have to pay zakat on the accounted profit or on the principal amount invested?
2) I have another investment which was done in Islamic shares which gives a profit based on loss/gain of the investing areas. This also since 2019 and showing profit on paper and I have not received a single penny from it. There is also a locking period of 5 years for this fund to redeem the profit or capital amount. So how should I give Zakat for this?