Question

His non-profit organization gives loans with interest to cover administrative costs

218

Question

I've a question about my employment, I am working for an organization who are giving loans to Afghan Formers, the loans are Islamic and none-Islamic, currently majority of our loans are Islamic, the main goal of this org is to help formers and use the profit money for the organization's Admin and operations cost, and this profit / interest money is not intended for someone, only to keep the Org running and keep the fund money intact, so they are given to more and more formers, I am working here as the IT. so I wanted to know, if the salary I am getting is Halal, or Haram. based on facts and figures according to Islam.The organizations offering loans in Afghanistan has long history, at the start they would give loans without interest, but they didn't work, since either people would not pay back, or they wouldn't pay on-time, so the new system includes an extra interest on the late payments. Please let me know, if you need more clarifications. Thanks, Asad

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Accepted Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ʻalayhi wa sallam, is His Slave and Messenger.

The fact that the purpose of the interest is to keep the organization running and to provide financial resources to help a greater number of farmers does not make usury permissible. The organization may fulfill this objective and gain lawful revenue through lawful means by engaging in permissible financing projects such as Muraabahah (mark-up sale), partnership, and the like.

If your job in that organization is not associated with these usurious loans, there is no harm in you keeping your job; otherwise, it is impermissible for you to work there. Jaabir said, “The Prophet, sallallaahu ʻalayhi wa sallam, cursed the receiver of Riba (interest) and its payer, and the one who records it, and the two witnesses, and he said, "They are all equal."” [Muslim] This Hadeeth serves as a clear evidence for the prohibition of engaging in any activity that facilitates usury.

Allaah Knows best.

Fatwa

His non-profit organization gives loans with interest to cover administrative costs

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Related Fatwa

Is it halal to work for a company that creates halal IT products but some of its stakes are owned by an interest-based bank?

Ruling on a technician or business owner working with banks, temples, hotels, etc.

Ruling on Profits in Halal Business with Haram Income

Benefitting from income earned from a job that involves selling both permissible and forbidden items, such as pork

Ruling on using former employer's contract template in business

Working in a Company which Markets Machinery with Dual Use in Halal and Haram Activities

Ruling on ill-gotten money due to cheating

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