Home | Fatwa | Business | Income from a business started with interest money?

Income from a business started with interest money?

read time: 2 min

 

Nasihah (Advice): Non-repayment of loan – A thief

 

Sayyiduna Suhaib Radhiyallahu Anhu reports that Rasulullah Sallallahu Alayhi Wa Sallam said: “Any Man who takes out a loan, having resolved not to pay it back, will meet Allah as a thief.” (Ibn Majah)

 

________________________________________________

 

Question and Answer:

 

  1. Years ago, I was not inclined to Deen. So a friend of mine asked me for a R100.000.00 loan and I gave it to him on interest for a R150.000.00 return. After he repaid me the interest loan of R150.000.00, I used the same money to start-up my business which is a multi-million Rand buisness Today. I am concerned about the interest money I used to start my multi-Million Rand business. Is my entire business Haraam or just the interest portion of it?

 

 

  1. As a general rule, it is Haraam for person to take or give interest loans. If an interest loan had been taken or given to a person, the interest money has to be returned to its original owner. A person should make sincere Taubah and Istighfaar for involving himself in such loans.

 

In the enquired case, the Halaal profit earned from your capital investment (interest) to your start-up business over the years is Halaal. The capital investment of interest to your start-up business will not affect the status of your Halaal profit of your multi Million Rand business Today. However, the interest portion of your capital investment (R50.000.00) to your start-up business is Haraam for you and has to be returned to your friend.

 

Note: It should be kept in mind that this is a case of a person giving an interest loan and benefitting from it negligently or ignorantly. Otherwise, it is not allowed at all for a person to do so intentionally or make this a means or source of income.

 

And Allah Ta’ala Knows Best

 

Mufti Ismaeel Bassa

 

Confirmation: 

Mufti Ebrahim Desai

 

(Islamic rulings on this Q&A newsletter are answered in accordance to the Hanafi Fiqh) 

 

Fatwa Department
Jamiatul Ulama (KZN) 

Council of Muslim Theologians
223 Alpine Road, Overport

Durban, South Africa
Tel : +27 (0) 31 2077099
Fax : +27(0) 31 2074163
Website : www.jamiat.org.za

Twitter:@JamiatKZN

Check Also

Claiming free Uber rides on another person’s name

Authenticity Of Rajab is ALLAH’s Month Hadith

Authenticity of Rajab is Allah’s month narration Question Is the following narration “Rajab is Allah’s …