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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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
Read more...How can potential Zakat recipients be determined?
Question: When determining who is eligible for Zakat ,what information and verification is required? Are any of the following acceptable methods of selecting Zakat recipients? Only ask the beneficiary, if they are eligible for Zakat? Ask the beneficiary for amount of savings, debts, income and expenditure to then calculate a rough eligility based on Nisab? Does […]
Read more...What is Al Qalam’s position on investing in cryptocurrencies?
Q: What is Al Qalam’s position on investing in cryptocurrencies? A: Our scholars are currently conducting research into the issue of investing in cryptocurrencies and will release our official position in due course in’sha’Allah. Admin Al Qalam Shari’ah Panel
Read more...Is Life Assurance Halal
Question: Is Life Assurance Halal? I know it is used interchangeably with Life Insurance; however, they are not one and the same. life assurance typically covers you for your entire life and so is often known as ‘whole of life’ cover. Premiums for this type of cover tend to be more expensive than for life […]
Read more...Is the Legal and General Ethical Pension Fund Permissible?
Question: Is the Legal & General Ethical Pension Fund Permissible? https://www.fundslibrary.co.uk/FundsLibrary.DataRetrieval/Documents.aspx?type=custom_field.www_landg_co_uk.factsheet_SHIFA&user=flweb&id=62fc2302-3833-4cfb-bafb-e8eff5176882&track1=68896048-52f1-40eb-a86c-3e1d119e18a3&track2=LegalAndGeneralAdviser Answer: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب The LEGAL & GENERAL PENSION ETHICAL FUND in question invests nearly 30% in the interest based financial sector and thus it cannot be considered to comply with Islamic law. And Allah knows best, Mufti Mohammed Zubair […]
Read more...Individual Zakat liability on Group Investments
Question: 5 people, including Zayd, bought an investment property together. Zayd’s primary intention in buying the property is to generate income through receiving rent payments. He has not bought it with the intention to sell. Like Zayd, Zayd’s partners have bought the house with the intention to make money through rent that they will receive. However, […]
Read more...Are Trusts recognised in Islam?
Question: Are trusts (where the legal and beneficial ownership of an asset are split) recognised in Islam? e.g. a house is in my name, but I’m holding it on trust for my brother? Answer: لجواب حامدا ومصليا ومسلما ومنه الصدق والصواب The split of legal and beneficial ownership does find some validity in Islamic jurisprudence. […]
Read more...Can Wealth be allocated outside of a Will?
Question: Can half of a pension fund be allocated to a family member, such that it doesn’t form part of estate for inheritance purposes? Answer: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب Any allocation of funds further to your death is effectively a bequest. A bequest cannot be made in favour of someone [like […]
Read more...Is it permissible to take out critical health insurance?
Question: Is it permissible to take out critical health insurance? Answer: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب Conventional insurance is a commutative contract that involves gross uncertainty, contingent return, meysir and riba. Thus, conventional insurance is not permissible and is tolerated only where it is a legal requirement or a real necessity. Critical illness insurance […]
Read more...Zakaah on Defined Benefit pension
Q: What is the ruling on the following Pension: I am part of a defined contribution pension scheme which I have paid into for many years. I am coming up to retirement very soon. With regards to Zakaah, What and when would zakaah be payable on the funds? Would I have to pay Zakaah for every […]
Read more...Purchase of Shared Property
Q: Is it permissible in Islam to purchase a shared property, where you buy 50% of the property and pay rent on the rest and the rent includes building insurance? A: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب It is permissible to buy a share of of a property and then rent the remaining share from the […]
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