Taking profit on a loan

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Taking profit on a loan

Financial Transactions,Interest,Taking profit on a loan

Fatwa No :

82288

| Date :

0000-00-00

Fatwa No : 82288
Taking profit on a loan

معاملات / مالی معاوضات / سود

Taking profit on a loan

What do the esteemed scholars and respected Muftis say regarding the following issue that Zaid purchased a car from Amr for 3 million rupees in cash. However, Zaid only had 1.5 million rupees, which he paid to Amr. For the remaining 1.5 million rupees, Zaid told Bakr: ‘Please pay 1.5 million rupees to Amr on my behalf, and I will pay you 2.75 million rupees (in monthly installments of 45,000 rupees).’ Bakr then directly handed over the 1.5 million rupees to Amr (without giving it to Zaid first). Zaid also registered the car in Bakr’s name. According to Shariah, is this transaction permissible or not? Wassalam.

الجوابُ حامِدا ًو مُصلیِّا ً

According to the method mentioned in the question, Zaid’s transaction with Bakr is in the nature of a loan, upon which taking profit is impermissible in Shariah and amounts to usury (interest). Because of this transaction, both of them are committing a sin, and it is obligatory upon them to immediately terminate this usurious dealing.

مأخَذُ الفَتوی

کمافی الدرالمختار: وفي الخلاصة القرض بالشرط حرام والشرط لغو بأن يقرض على أن يكتب به إلى بلد كذا ليوفي دينه.وفي الأشباه كل قرض جر نفعا حرام اھ(5/166)۔

And Allah knows best
Darulifta Jamia Binoria Aalamia

Fatwa No 82288 Verify Now

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Related Topics Relative Topics

خرید و فروخت
Buying and Selling

95
سود
Interest

50
قرض
Loan

32
کاروبار
Trade and Business

31
ملازمت
Employment and Job

26
اجرت و کرایہ داری
Rent

25
شرکت و مضاربت
Company and speculation

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ہدیہ
Gift

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رشوت
Bribery

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رہن یا گروی
Mortgage

2

Taking profit on a loan        
    
    Question:
    What do the esteemed scholars and respected Muftis say regarding the following issue that Zaid purchased a car from Amr for 3 million rupees in cash. However, Zaid only had 1.5 million rupees, which he paid to Amr. For the remaining 1.5 million rupees, Zaid told Bakr: ‘Please pay 1.5 million rupees to Amr on my behalf, and I will pay you 2.75 million rupees (in monthly installments of 45,000 rupees).’ Bakr then directly handed over the 1.5 million rupees to Amr (without giving it to Zaid first). Zaid also registered the car in Bakr’s name. According to Shariah, is this transaction permissible or not? Wassalam.
    Answer:
    According to the method mentioned in the question, Zaid’s transaction with Bakr is in the nature of a loan, upon which taking profit is impermissible in Shariah and amounts to usury (interest). Because of this transaction, both of them are committing a sin, and it is obligatory upon them to immediately terminate this usurious dealing.