Published 5 days ago
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Q: There is a government youth development department here. There is a loan project and it was declared on the terms 9% service charge for women with no Riba.
9% at gradually low rate.
Is working as a youth development officer halaal there or taking the loan?
It’s a charitable government department but yet there is that 10% service charge for men, 9% service charge for women, etc. rate for other gender.
A: When they are asking people to pay back more than the loaned amount, then this extra amount they are asking for is riba, even though they are calling it a service charge. You should refrain from taking this riba based loan from the government.
And Allah Ta'ala (الله تعالى) knows best.
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