Interest

Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party.

207033

Cryptocurrency . Interest . Investment

Is perpetual leverage trading in cryptocurrency permissible if the exchange doesn't charge interest and if we invest based on accurate chart analysis?

Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 1 month ago

Cryptocurrency dealings are allowed according to some Maraaji’ like Ayatullah Zanjani who put two conditions: it should be according to the law of the country and should not harm anyone. There are different opinions in this matter. If you follow the verdict of the Marji’ who allows cryptocurrency dealings, there is no harm in leverage trading as far as it does not contain usury (RIBA).

Wassalam.

206296

Interest . Investment

Is it permissible to invest in companies that earn interest from non-Muslims, given that some hold cash in non-Muslim banks or interest-bearing investments? If their main business is Halal, is purification of earnings from these investments required?

Investing in any company which has lawful activities and lawful income is allowed. Getting some interest from non Muslim banks is allowed according to many leading scholars as far as it was not under demand of RIBA (Usury).

Wassalam.

204177

Government . Students . Education . Interest . Loan

In the UK, students receive government loans for higher education, which they must repay as a small percentage of their salary after reaching a certain income level. Is this practice permissible in Islam, considering the interest involved?

It is permissible to receive money from the government for studying expenses knowing that the government will take it back in instalments from your future salaries.

Wassalam.

196499

Stock . Halal . Haram . Interest . Income . Investment

Is it permissible to invest in a company that primarily engages in Halal activities but has minor Haram elements, such as receiving interest income?

If the income of the company is a mixture between lawful and unlawful, then we must avoid investing in such company. Receiving interest from non Muslim banks is not considered unlawful according to many Muslim scholars.

Wassalam.

149436

Bank . Interest

Is the interest earned on savings in banks considered allowed?

Interest earned from Muslims is not allowed, but if it was given by non Muslims according to their laws, then it is allowed.

Wassalam.

190905

Forex . Interest

Is spot forex trading allowed since it does not involve interest and transactions are executed instantly without delay?

Spot trading is allowed according to many leading Islamic scholars.

Wassalam.

189778

Halal . House . Haram . Interest . Money

Is it permissible to sell a house that was financed with Haram money and for the family members to utilize the proceeds?

Haraam money is not permissible to deal with or even to touch. Haraam money should be given back to its real owner and if unknown then to be given to the Marje; of Taqleed to distribute it among poor believers.

Wassalam.

187189

Riba . Car . Interest . Mortgage

Is it permissible to engage in practices such as mortgage or car finance, which involve interest, even though Riba is considered forbidden in Islam? Are they considered Halal as long as the full cost of the product is agreed upon including interest?

If you know that it is a Riba between Muslims, then it will be the not permissible to deal with it. If the finance is given by a non Muslim to a Muslim, then it is permissible if it is done according to their own laws.

Wassalam.

163173

Riba . Interest . Saving . Sunni-Shi'a

Can you recommend an English book that addresses and explains the reason for the permissibility in Shia Islam of taking interest on savings accounts in certain situations?

Jurisprudence is a big field of Islamic knowledge which has its own experts who spend decades of years to be able to study the evidence from Quranic verses after going through all the fields of Quranic studies, and the authentic Hadeeths after going through the fields of Hadeeth and Rijaal which deals with assessing the authenticity of every narration. We also have the principles of Fiqh which is logic of jurisprudential thinking.
'You need to go through the evidence confirmed by the great jurisprudence scholars or Maraaji' of Taqleed to see the reasons of any Islamic rule including your question.

'In brief, Islam does not permit RIBA (usury) between Muslims, but not every interest known today is usury. When non Muslims keep your money and put is their business and give you whatever they everyone else from their profit, it is permissible for you to accept it. This is according to the jurisprudence evidence which has details in jurisprudence books written by the Maraaje' of Taqleed. You are accepting what they usually give to every one who keeps his money with them as part of their business.

'Wassalam.

158393

Loan . Bank . Money . Interest

I am starting a business in the EU and getting a loan from an EU bank. When I borrow money, there will be an interest that is obligatory for me to pay. Is this permissible as my real intention is to get capital from the bank?

Yes. It is permissible to get a capital from non Muslim bank or financial institute and use it in lawful way.

Wassalam.

153821

Insurance . Interest . Employment

Is it permissible to work as a consultant for a Western insurance company, considering the possibility of interest being involved?

Insurance business is allowed according to our leading Islamic scholars (Maraaji’ of Taqleed) but interest is not permissible at all. You must keep yourself away from any interest.

‘Wassalam.

156542

Gold . Energy . Interest . Investment

Is trading CFD on gold, metals, oil and the energy sector allowed if no interest is involved?

CFD dealings are permissible like other tradings as far as there is no interest or unlawful act is involved.

'Wassalam.