Taking a profit against a loan

Q: I need my cousin to invest 50 000 for a service that I offer which is finding clients for private electricity pay as you go meters. My cousin is asking me to pay him back with extra benefits (cash) which I think is above the loan amount. Is there a special deal we can make to meet his requirements because I really need this as capital or is borrowing from absa shariah loans a better way to go?

A: Taking a profit against a loan is interest. Any extra amount you give him over and above the loan will be pure interest and hence haraam.

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

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)