Question:

al-salāmu ‘alaykum,

I need money to finance a small business (a halal bakery). I have some money saved (about $30,000) but I need another $30,000 to start it. Can I take a loan with interest to start the project knowing that I have not found a lender according to al-Sharīʻah?

Note: I am currently working as a salaried employee, and this work has caused me health problems. That’s why I want to start my own family project.

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As salāmu ‘alaykum wa rahmatullāhi wa barakātuh.

May Allah taʻālā increase your īmān and reward you for seeking a permissible way to earn a ḥalāl income. The prohibition of interest (ribā’), like all prohibitions, is meant for the benefit of mankind. The benefits extend from this world into the next. At times, the benefit is apparent, and at times, it is hidden. For example, whereas an interest-based system seeks to generate a guaranteed amount of money for one party, the Islamic system asks the person to either help the other person in the form of non-interest loans or to contractually share in profit and loss. Among the many benefits of this system is that it creates a more equitable relationship between the parties involved.[1]

Additionally, when it comes to interest-based loans, Allah taʻālā states unambiguously that it is forbidden, compares the one that deals with it in this world as one affected by the Shayṭān, and states they are deserving of Jahannam.

Those who take ribā’ (usury or interest) will not stand except as one whom the Shayṭān has driven crazy by his touch. That is because they have said, “Sale is but like ribā’.’’, while Allah has permitted sale, and prohibited ribā’. So, whoever receives advice from his Lord and desists (from indulging in ribā’), then what has passed is allowed for him, and his matter is up to Allah. As for the ones who returns (to ribā’), those are the people of the Fire. They will remain there forever. (Al-Baqara: 275)

Your intention to start a ḥalāl bakery is noble. However, it would defeat your purpose if you were to fund your ḥalāl bakery with an impermissible interest-bearing loan.[2] You will, in shā Allah, find greater barakah and benefit in starting your business with entirely permissible funds.[3] If your current job is detrimental to your health, we advise you to seek another position. In the meantime, continue to save money and seek partners/ lenders willing to offer you permissible funds.

And Allah taʻālā knows best,

Maulana Mateen Khan
New Jersey, USA

Checked and Approved by:

Mufti Faisal bin Abdul Hamīd al-Mahmudi
Darul Iftaa Canada (fatwa.ca)

[1] An Introduction to Islamic Finance. Mufti Muhammad Taqi Usmani. Pg. 7.

[2] فتح القدير، ابن الهمام، دار الفكر، ج4 ص7

(باب الربا) هو من البيوع المنهية قطعا بقوله تعالى {يا أيها الذين آمنوا لا تأكلوا الربا} [آل عمران: 130] بسبب زيادة فيه فمناسبته بالمرابحة أن في كل منهما زيادة إلا أن تلك حلال وهذه منهية…

{وأحل الله البيع وحرم الربا} [البقرة: 275] أي حرم أن يزاد في القرض والسلف على القدر المدفوع

[3] تأويلاة اأهل السنة للماتريدي، دار الكتب العلمية، الطبعة الأولى، ج2 ص271

ولكن أصل «المحق» هو رفع البركة؛ وذلك أن الناس يقصدون بجمع الأموال والشح عليها، لينتفع أولادهم من بعدهم إشفاقا عليهم، وكذلك يمتنعون من التصدق على الناس. فأخبر الله تعالى : أن الأموال التي جمعت من جهة الربا ألا ينتفع أولادهم بها، وهو الأمر الظاهر في الناس. وأخبر أن الصدقات التي لا يمتنعون من الإنفاق عنها يربى ويخلف أولادهم إذا تصدقوا، ويمحق الربا ويرفع البركة عنها؛ حتى لا ينتفع أولادهم بها. وهو ما روى عن رسول الله ﷺ أنه قال : «كل متبايعين بالخيار ما لم يتفرقا، فإن صدقا وبينا بورك لهما فيه، وإن كذبا وكتما محقت عنهما البركة».