Charging a service fee for lending money

Q: Is lending money by a Muslim for a standard service fee halaal? If not, what is the permissible way of a Muslim lending money?

A: This enters under the definition or riba (interest). Hence, it is not permissible. The extra money earned through a loan is riba (interest).

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


Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)