Loading...

Loans on Condition

Transactions & Incomes

A fund giving out loans on the condition that the member deposits a certain amount of money in the fund where it has to be left for three...

Q: A fund giving out loans on the condition that the member deposits a certain amount of money in the fund where it has to be left for three to six months. At the end of this period, the member can take a loan equivalent up to double the amount he deposited. After the member pays off the debt, his money is returned to him. What is your view?

A: If depositing the money in the fund was under the title of loan for a particular period, on the condition that the fund grants him the loan, or lending him some money was made conditional on his depositing a certain amount of money in the fund, this condition amounts to riba and is, therefore, haram and invalid. However, both loan deeds are valid in principle.
 

Related News
Add to Home screen
This app can be installed in your home screen