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

Sadaqatul Fitr FAQ’s

  Sayyiduna Abdullah Ibn Abbas Radhiyallahu Anhuma narrates, “Rasulullah Sallallahu Alayhi wa Sallam made compulsory …

The (quick) fiqh of Fasting

by Shaykh Mansur Ali Source: Ilmgate Posted by: MV Media   Definition: Fasting is to …