Q: Are the Home Purchase and Buy to let products offered by Al Rayan Shari’ah compliant? A: Al Qalam Shariah Panel have not audited Al Rayan bank’s products hence we are not able to comment on their shariah compliance. Each of the banks that offer Shari’ah compliant home purchase plans have a panel of external […]
Read more...Category: Banking Fatawa
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 […]
Read more...Can interest money be used for paying Council Tax and car insurance?
Q: Can interest money received be used for paying Council Tax and car insurance? Additionally should interest money be disposed with non Islamic charities? A: Interest money cannot be used to pay council tax or car insurance. It should instead be given to the poor or utilised in public welfare projects without any intention of […]
Read more...Is it permissible to hold a fixed term deposit or an ISA savings account?
Q: Are the fixed term deposit and ISA savings accounts permissible means in shariah in terms of the returns on one’s initial deposit? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Any fixed term deposit account or ISA that gives interest or a guaranteed return on the initial deposit is not permitted. It is possible to structure a fixed […]
Read more...Is the PayPal Working Capital scheme shariah compliant?
Q: Please could you have a look at the new scheme from PayPal called ‘PayPal Working Capital’ and let me know if it’s permissible, I have had a few people ask me and after looking at it, the scheme looks promising, but my limited knowledge cannot determine if it is indeed Sharia compliant? الجواب حامدا […]
Read more...Where should I keep my savings?
Q: I have some savings in a current account from a conventional bank that does not charge interest as far as I have been told, and just over £1000 saved in my saving account, that charges a minimum interest rate, that I do not have to hand now but I am told it is due to go […]
Read more...The time value of money in Islam
Q: A father invested 850,000 rupees into an interest profit scheme in Pakistan in 1995 in one of his sons name. In 1995 the value of the rupees was strong. The rupees rate to the English pound was £1=55 rupees. Therefore 850,000 rupees was £15,454 in the year 1995. After 20 years, in 2015 the interest […]
Read more...Receiving a refund for mis-sold PPI and interest
Q: My father has received a refund for mis-sold PPI on a credit card for period from 2000 – 2012. They have also refunded interest he paid, as well as 8% interest on top as statutory compensation. Is the refund of the interest he paid permissible to keep? Also the 8% interest as compensation? We […]
Read more...Is my income haram if a percentage of my income is from haram means?
Q: I work for a software distribution company, where the revenue is generated by selling the software to different types of companies like Oil & Gas, Media, Banks, Hospitals, Airlines, etc. We are not sure how their revenue is generated. I understand that banks run on the concept of riba and it is haram to […]
Read more...Is Working as an External Auditor Acceptable?
Q: I am working as an external auditor. I have always had the conception that working for a bank is not lawful dealing in interest. I am currently looking for potential jobs and there are some well paid jobs being offered by some of the leading banks in their internal audit departments which look after […]
Read more...Is it permissible to use a non-islamic business account that does not accrue interest?
Q: Is it permissible to use a non-islamic business account that does not accrue interest for a ltd company? الجواب حامدا ومصليا ومنه الصدق والصواب A: It is permitted to use an account of a conventional interest-based bank that does not bear interest for a limited company. Any deposits in the account are essentially a […]
Read more...Is it haram to pay off interest I unknowingly accumulated?
Q: I have accumulated an interest based debt of which I had no previous knowledge. Is it haram for me to pay off this interest or am I allowed to pay it off in order to have a ‘clean slate’ so to speak. الجواب حامدا ومصليا ومنه الصدق والصواب A: You should first attempt to […]
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