Q&A Fatawa

Is interest permissible if below the inflation rate?

Q: Is interest permissible if below the inflation rate?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: The permissibility of interest at or below the rate of inflation is not supported by Al-Qalam and the majority of scholars.  Please see the following link: http://www.1stethical.com/wp-content/uploads/2010/07/StudentLoans.pdf Rather, any loan that attracts a conditional increment is not permitted. This […]

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If one has to pay money to apply for a grant, would this be considered gambling?

Q: If one has to pay money to apply for a grant, would this be considered gambling?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: If the fee represents real costs for processing the application it is permissible to charge such fee.

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What happens to the wealth of a revert if they leave no Muslim inheritors?

Q: What happens to the wealth of a revert if they leave no Muslim inheritors?     الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: A revert who leaves no Muslim inheritors may bequeath up to one third of his/her residual estate to non-Muslim relatives and friends etc.  Under an Islamic system, the remaining two thirds […]

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Is it permissible to pay for a Gold Safekeeping Facility for fixed monthly fee?

Q: Is it permissible to pay for a Gold Safekeeping Facility for fixed monthly fee (charged in proportion to the weight of Gold that is safeguarded)? http://www.amanabank.lk/en/personalbanking/banking-services/gold-safekeeping-facility As outlined on the above site, this service also includes a facilty to borrow ’emergency cash’ secured against the safe kept gold. The bank has said that the […]

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Is it permissible to work in IT at an investment bank?

Q: Will it be halal income/earning working at Investment banking ( Barclay’s Investment Bank) IT as Software Engineer? A: When working as an employee in a business where a major portion of the business does not conform to the dictates of Sharīʿah there are principally two issues that must be determined: 1. Is the job itself […]

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Is it permissible to take a business loan which requires payment of an insurance premium?

Hawkesbay Investment Corporation Limited The business is in conformity with standards and in line with normal  corporate ethics. Based on the loans agreement   drafted by our client and we guarantee that our client will only enter into a legitimate  business transaction as proposed with the funds. Legal & General Insurance  company  hereby  guarantee the safety […]

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What options are available to fund university education?

Q: What options are available to fund university education in the absence of Shari’ah compliant student finance?  A: For options on funding University education please see information provided on the Halal Student loans website as copied in the link below. http://www.halalstudentloans.co.uk/wp-content/uploads/1.-Options-Toolkit.pdf Admin Al Qalam Shari’ah Panel

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Is the government contribution in the help to buy scheme permissible?

Q: Is it permissible to have a savings account for a help to buy scheme where, if u have about £12000 the government will give you £3000?   الجواب حامدًا و مصليًا و منه الصدق و الصواب A: The contribution paid by the government in an Help to Buy: ISA is actually a gift and not […]

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Is it permissible to purchase car insurance in instalments?

Q: Is it permissible to purchase car insurance in installments due to necessity when one cannot afford a one off payment. installments also have an added interest charge per month. For example: a one off payment will cost 1000 pounds and in 12 installments it’ll cost 1200 pounds. As insurance contains elements of interest could […]

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Will I be sinful if I stop my financial support to a person?

Q: I have agreed, as goodwill, to support a widowed aunt on a monthly basis. What are my rights here? What if I wish to stop sending financial support to my aunt at some point (or skip sending money for a few months and resume after)? Will it be sinful if I don’t send money […]

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The charity I work for is funded by banks and Big Lottery Fund: will my wage be halal?

Q: I have some questions regarding employment. I work in the non profit sector so for charities and community organisations. My first question is when applying to these jobs sometimes they state the funding has been granted from such and such organisation. This organisations sometimes is the Big Lottery Fund and also banks such a […]

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