Investors: With savings to invest, the Islamic way Q296 :Investors: With savings to invest, the Islamic way A296 : The question of lawful investment and the attraction of interest continue to trouble many a Muslim who have small savings to invest but are unable to determine which way to turn. They have learned that bank…
Ivestment pooled: Questionable source of money invested Q295 :A group of friends decide to pool their resources together and start an investment project in a few years time. However, in the meantime some of them put their savings in a deposit account in a bank, earning interest. The others are worried about that and decided…
Investment of savings Q294 :Now that we are certain that bank interest is forbidden in Islam, the question arises: how can a Muslim invest his savings? If he lives in a country where there is no Islamic banking facility, the alternatives available to him are either to use a deposit account which earns interest or…
Interest: Varying rates of interest on bank accounts Q293 :You have mentioned that fixed interest is one of the two reasons which make using a bank deposit account forbidden from the Islamic point of view. However, some banks give a varying rate of interest. My bank is offering a facility by which one’s account gains…
Interest: Spending interest Q292 :The interest we receive from the bank on our deposit we distribute to the poor as charity. We are unable to act on the suggestion that such interest could be used to provide public services such as toilets, cemeteries, etc. The only way is to distribute it to the poor. Your…
Interest: Setting off interest against interest Q291 :Sometimes an individual may find himself having some money which he can deposit in a bank, and he may have borrowed a loan to finance the purchase of his house. Is it permissible to use the interest paid to him on these deposits in order to pay off…
Interest: Pooled to help the poor Q290 :Many Muslims in India live below the poverty line. In case of an extreme need, a poor Muslim may either sell some of his essential belongings or pawn some items, normally with a non-Muslim pawnbroker, who charges a very high rate of interest. In the overwhelming majority of…
Interest: Need to redefine it Q289 :May I appeal to you to redefine “interest” so that Muslim countries may be able to proceed with industrialization that will benefit them. Islam is a way of life which does not stop anything that benefits the Muslim community. I have in mind a certain case where a group…
Interest: Its effects on good actions Q288 :Because my savings are not enough for the purpose, I have been contemplating the possibility of obtaining a bank loan in order to build a house for my family. My father has written to me that this is not acceptable from the Islamic point of view. He also…
Interest: Bank deposits and uses of the interest Q287 :Is it permissible to use the interest I get on my bank account to repay the debts of my poor relatives and friends? A287 : An increasing number of scholars are now in agreement that it is permissible to use the interest received from banks and…
