Question: Whether a creditor can fix
time and rate of profit while the debtor saying Insha#
Allah, he will be able to earn and pay the same in time; failing
which the guarantor may give profit asked for plus also a bonus or compensation
for delayed payment, if any, also according to other arrangements regarding
the loan. What will be the position if the system of insurance for the
said profit is introduced?
Answer: When a lender fixes time and
rate of gain (‘profit’) on the loan he gives, he demands Riba#
in effect. Guaranteeing something which is prohibited in Shari#‘ah
amounts to co-operation in the commission of the evil Shari#‘ah
has prohibited, and cannot be allowed (5:2) |