Home | Fatwa | Business | Can I get a percentage profit on a loan?

Can I get a percentage profit on a loan?


السلام عليكم I have a friend who is in to watch and jewellery trading business . He needs some capital for his business and asked me for funding . He is assuring me a return of 4 percent per month. Is it permissible for me to accept it or should I ask him for a percentage of the profit ? Please clarify


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

It is not permissible for you to offer a capital loan to your friend and receive a repayment of the loan with a percentage profit every month. The excess payment will be Riba (Interest) which is prohibited

A Sharī῾ah Compliant alternative is through the:

  1. Mudārabah Contract
  2. Musharakah Contract


  • One partner provides the capital and the other provides his labour,
  • Both parties mutually agree to share the profits,
  • If there is a loss, it will be consumed from the capital.


  • The capital contribution is from all the partners,
  • The profits will be divided according to a mutually agreed percentage,
  • If there is a loss, it will be pro-rata to the capital contribution.

And Allah Ta’āla Knows Best

Huzaifah Deedat

Student Darul Iftaa
Lusaka, Zambia 

Checked and Approved by,
Mufti Ebrahim Desai.

Check Also

Social Media Platforms

Question: Assalaamu ‘alaikum Respected ‘Ulama I am on certain social media platforms, and I find …

Is it permissible for the divorced parties to demand any gifts given?

  Nasihah (Advice): Exchanging of gifts   Sayyidatuna Aaisha Radhiyallahu Anha reports that Rasoolullah Sallallahu …