Topics: Islamic Finance

Is Investing in a Business for Fixed Monthly Returns Halal?

Understanding Shariah Compliance in Business Investments

Question: A woman has two children who are orphans. She has remarried but does not want to burden her husband with the children’s school and tuition fees. The children’s aunt has given approximately four lakh rupees from Zakat and Sadaqah. The woman wants to invest this money in her brother’s business and has asked her brother to send her thirty thousand rupees monthly for the children’s fees. Her brother has agreed and said that she can take back all her money whenever she needs it. Is this method correct?

Answer: Investing money in a business and taking a fixed profit in this manner is not permissible, as it falls under the category of interest (Riba). According to Shariah, profits should be determined based on the business’s gains and losses. It is not permissible to take a fixed monthly amount as profit because business profits can fluctuate. For example, it is permissible to agree on taking a percentage of the profit, such as ten or fifteen percent, but taking a fixed monthly amount as profit is not allowed.

 Sheikh Maqbool Ahmed Salafi (Hafizahullah)

❪Jeddah Dawah Center, Hayy Al-Salamah – Saudi Arabia❫

Author: IslamicHelper

IslamicHelper

Recent Articles

Hashr on Day of Resurrection Explained

The Gathering (Hashr) and Resurrection (Ba'th) on the Day of Judgment "The Righteous Answers to Wise Questions" — (Part 17)… Read More

2 weeks ago

Souls in Barzakh: Ranks After Death

In Part 16 of “The Righteous Answers to Wise Questions,” Allamah Zaid al-Madkhali explains the various abodes of souls in… Read More

2 weeks ago

Scenes of Day of Resurrection in Islam

In Part 15 of “The Righteous Answers to Wise Questions,” Allamah Zaid al-Madkhali details the major scenes of Qiyamah —… Read More

2 weeks ago

Best & Worst Gatherings in Islam

In this part of “The Righteous Answers to Wise Questions,” Allamah Zaid al-Madkhali explains the most virtuous gatherings — sitting… Read More

2 weeks ago

Who Can Skip Ramadan Fasting? Qada & Fidyah Rules

Who Can Skip Fasting in Ramadan: Qada and Fidyah Explained Question: For which people is it permissible to skip fasting?… Read More

2 weeks ago

Shariah Ruling on Rape

In Islam, suicide is strictly forbidden (Haram) even to protect honor, as life belongs to Allah. A woman forced into… Read More

2 weeks ago