Fatwa #2762625 November 2013South Africa
Investing in convensional banks
Question
I would like to know about the legality of the following situations.
1) An individual borrows money. Interest is to be paid on this loan.
I kwon interest is haram. Assuming the rest of the business is aboveboard (sell cement) am I allowed
- To take a gift from this business
- Trade with this business
- Invest in this business
2)Am I allowed to put money in conventional bank without taking interest? If not which banks are the alternative?
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
According to our understanding of your query, if a person has taken an interest loan for his businesses, can one accept a gift from him or trade with him or invest in that business.
You are aware that interest haram and the person involved in taking an interest loan has committed a major sin. How ever, if the majority income of the business is halal, then you can take gifts, trade and invest in that business.
And Allah Ta’āla Knows Best
Abu Ali ad-Dagestani
Student Darul Iftaa
Moscow, Russia
Checked and Approved by,
Mufti Ebrahim Desai