Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

 

One of our brothers/sisters has asked this question:

AOA

Respected Bhai

My question is

My boss want me to open an account in which i will get the profit of 3% per year,i ask my frind is it permitted in islam to open such account? he said no. i Explian to my boss about this but i have no supportive points to satisfy him,he said to me that if i buy one house or piece of land today and after one year it give you profit of 3% then its ok or not?

 

Please let me help out form this situation.

waiting for your response

Rana Adnan

 

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Answer:

 

Riba and trade interest

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

 

Your Question: he said to me that if i buy one house or piece of land today and after one year it give you profit of 3% then its ok or not?

Dear and beloved brother in Islam, there is a world of difference between getting a fixed 3% return by placing some money in a bank-account, and buying a house or piece of land today as an investment, and in a years time that investment may or may not yield a 3% profit! 

 

The 3% fixed return from the bank would be deemed ‘riba’ in Shariah, and the +/- 3% (or more) would be deemed as ‘trade’…..and Allah Subhanah in His Absolute Wisdom and Knowledge has declared ‘riba’ as absolutely haraam and trade as halaal for the believers.

 

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch.   They have been condemned to this condition because they say,  “Trade is just like ‘riba”,  whereas Allah has made trade halaal and ‘riba’ haraam.   Henceforth,  if one abstains from taking ‘riba’ after receiving this admonition from his Lord,  no legal action shall be taken against him regarding the ‘riba’ he had devoured before:  his case shall ultimately go to Allah.   But if one repeats the same crime even after this,  he shall go to Hell,  where he shall abide for ever!   Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful,  sinful person.

 

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!,  fear Allah and give up that ‘riba’ which is still due to you,  if you are true believers.   But if you do not do so,  then you are warned of the declaration of war against you by Allah and His Messenger!

 

Al-Tirmidhi Hadith 2829        Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

 

Dear and beloved brother in Islam, Allah and His Messenger (saws) have declared every aspect and every manifestation of the abomination of ‘riba’ as absolutely forbidden for the believers who sincerely fear Allah and the Last Day; thus let no scholar, no ‘mufti’, no ‘boss’ or no one in creation convince you otherwise!!!

 

The fixed rate of return as interest one receives by simply placing the funds in an interest-bearing account puts the full risk on the shoulders of the person who borrows the funds from the bank on interest.  Regardless of whether the person who borrows the money makes a profit or a loss, the account holder is liable to receive a fixed rate of return……Islam guides that such a transaction is absolutely unfair and unjust and puts the well-being of the borrower in severe risk, while the other party simply sits and ‘sucks the blood’ of the poor!

 

But if one were to invest one’s funds in a partnership, or a business or a property, one takes the risk of one’s own profit and/or loss and thus one studies the conditions and stipulations of the investment well in order to maximize one’s profit and mitigate one’s loss.  Such business or trade with mutual consent neither ‘sucks-the-blood’ of the other party, nor takes unfair and undue advantages of the other party. 

 

Neither is the Lord Most Gracious Himself ever unjust or unfair towards His slaves; nor does Allah Subhanah approve of injustice and oppression amongst His slaves!  Thus He, in His Supreme Wisdom and Knowledge, has declared the very concept of ‘riba’ or interest as absolutely forbidden and ‘trade’ or ‘business’ as lawful for those who sincerely believe in Him and The Last Day. 

 

Any transaction based on ‘riba’ is neither Pleasing, nor Acceptable, nor finds any blessings with Allah Subhanah!

 

Allah Says in the Holy Quran Chapter 30 Surah Rome verse 39:

39      That which ye lay out for increase (riba) through the property of (other) people will have no increase with Allah: but that which ye lay out for charity seeking the Countenance of Allah (will increase): it is these who will get a recompense multiplied.    

 

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’,  although they were forbidden.  And that they devoured men’s substance wrongfully.   We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

 

Allah Says in the Holy Quran Chapter 3 Surah Ale-Imraan verses 130-132:

130    O ye who believe! Devour not ‘riba’ doubled and multiplied; but fear Allah; that ye may (really) prosper.

131    Fear the Fire which is prepared for those who reject faith.

132    And obey Allah and the Messenger; that ye may obtain mercy.

If one trusts, obeys, and follows the guidance and commands of Allah and His Messenger (saws),   one can be assured of never ever being misled;   but if one believes, obeys and follows any other guidance, other than that of Allah and His Messenger (saws), one can be assured of being led astray.  

 

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone.  Allah Alone Knows Best and He is the Only Source of Strength.

 

Your brother and well wisher in Islam,

 

 

Burhan