Question: A businessman takes money from people on the condition that he will trade with it and give a fixed monthly profit of one thousand rupees on every one hundred thousand rupees. If the money is needed, it can be withdrawn with one month’s notice. Is this permissible?
Answer: If a person takes one hundred thousand rupees for trade and gives a fixed monthly profit of one thousand rupees, this is not permissible. This is considered interest (Riba) and such a business is haram (forbidden) because we all know that trade involves both profit and loss. Therefore, participating in trade based on profit and loss is permissible, but giving a fixed profit is not permissible.
✍ Sheikh Maqbool Ahmed Salafi
❪Jeddah Dawah Center – Al-Salamah – Kingdom of Saudi Arabia❫
Discover how Muslim women’s faith and obedience can transform society. Learn key Islamic teachings from the Quran and Hadith Read More
Explore the authentic Sahih al-Bukhari narration refuting claims that Hind bint Utbah ordered Hamza's death Read More
Explore the profound significance of Fajr prayer in Islam, its immense rewards, and why it's a crucial test of faith Read More
Explore the often-overlooked third group of Companions who chose to abstain from internal fighting during a tumultuous period in Islamic… Read More
Learn about love, hatred, and hypocrisy in Islam through hadiths and Ibn Hajar's insights Read More
A husband called his wife 'sister.' Does this break the marriage? This article explains the Islamic concept of Zihar, its… Read More