Taking a loan on interest

Submitted by user2 on Mon, 2017-03-13 07:49

Q: I work with a company and its operate a cooperative where any employee can be saving any amount from his or her monthly salary. And one can choose to collect loan and he will pay 10% interest of the amount he collected over period of time. Then at end of every year the 10% interest collected from those people that collect loan will be shared among the people that are saving money in the cooperative including those that collected loans and paid the interest. So my question is; is the transaction halal and the interest one paid and received?

A: This is not permissible. Interest is haraam.

And Allah Ta'ala (الله تعالى) knows best.

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

Category:

Business and Dealings›Loans & Debts›Loans

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