Q&A Fatawa

Is one sinful while studying with a Interest (ribā)-based student loan? And will one be will considered as consuming ribā?

Q: Is one sinful while studying with a Interest (ribā)-based student loan? And will one be will considered as consuming ribā?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Under the current student loan agreement the student does not consume ribā. Rather, the student agrees with the Student Loan Company, that he will pay […]

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As a website owner, can I get commission from their profit?

Q: People use my site to auction their cars and I get a percentage cut from their profit. Is this permissible, given that I do not own their cars? And I get commission from their profit? A: Whilst you may charge a fee for the usage of your site the fee must be known.  You […]

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What is the Islamically correct way to contract a property developer to build a house for you?

Q: A buyer agrees with a property development company that they will pay the full price now for a house/flat now even though the property is still under construction. Once the house is complete, the buyer will then move into the property. During the period of construction, the property development company will pay rent for […]

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What’s the Islamic ruling on options to buy/sell something in the future?

Q: Are two parties allowed to simply agree to an ‘option’ for both parties in the future? For example, A agrees to an option with B that A may/may not buy something in the future. Likewise, B also agrees to an option to sell/not sell in future. Is this allowed?   الجواب حامدا ومصليا ومنه […]

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Is paying off a person’s debt permissible if that debt was taken out for something deemed impermissible in Sharī‘ah?

Q: Is paying off a person’s debt permissible if that debt was contracted for something deemed impermissible in Sharī‘ah?   الجواب حامدا ومصليا ومنه الصدق والصواب   A: In principle, if you gift or lend someone some money that person is free to utilise that money in whichever way he/she feels even if you have […]

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My father said that if he gives me money as a gift, I must buy a house. Is this a type of riba statement?

Q: My father said that if he gives me money as a gift, I must buy a house.  Is this a type of riba statement?    الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: If your father gives you some money and stipulates that you must purchase a house therewith, irrespective as to whether the […]

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Is Zakat paid on a local initiative where money is collected to be distributed to needy local individuals?

Q: Is Zakat paid on a local initiative where money is collected to be distributed to needy local individuals? Two brothers run a small initiative, whereby people give monthly donations (usually £10) which goes into a separate account for that specific purpose/initiative. This money is then distributed to local people (by the 2 brothers) who are […]

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Private pensions involve investment into the stock market, whereby, each person is required to select a level of risk they wish to undertake; low, medium, high. Is this risk halal?

Q: Private pensions involve investment into the stock market, whereby, each person is required to select a level of risk they wish to undertake; low, medium, high. Is this risk halal?   The pension advisors mention that you may not receive the amount you invest (as a minimum) if you take a greater risk in investments. الجواب […]

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Who is liable to pay the Zakat for a limited company?

  Q: Is a limited company an independent entity in Islam and therefore liable for its own Zakat or does its value belong to the shareholders? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The liability to pay zakat falls on the shareholders and not the company itself. If taxes have been incurred on the zakat […]

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Is it permissible to give to charities who fund military arms or tobacco investments?

Q: Is it permissible to give charity to organisations if one knows they are funding military arms and tobacco investment? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Military armaments can be both permissible and impermissible depending on the situation at hand.  In fact, they can even be an obligation such as when needed for […]

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