Ramadan: The Month of ... Date Added: 13-03-2024

From Etiquettes of Fasting Date Added: 12-03-2024

Tips for Seizing the ... Date Added: 11-03-2024

Allah`s Blessings in ... Date Added: 07-03-2024

The Glad-Tidings for those ... Date Added: 20-03-2024

The Importance of Time ... Date Added: 18-03-2024

Ramadan: The School of ... Date Added: 17-03-2024

The Social Aspect of ... Date Added: 14-03-2024

Search Fatawaa

Subject : Ruling on Personal Advances System of the Social Security Corporation

Fatwa Number : 3531

Date : 04-09-2019

Classified : Usury (interest) &Loans

Fatwa Type : Search Fatawaa

Question :

What is the Islamic ruling on the personal cash advances made by the Social Security Corporation to pensioners in return for (4.5%) as declining interest?

The Answer :

Praise be to Allah the Lord of the Worlds.

Having reviewed the system of the personal cash advances, which the Social Security Corporation grants to pensioners, we concluded that it is unlawful since, in principle, every addition to a loan is usury. Terms and conditions of the above system included the following: "Interest will be calculated on the amounts loaned by the Corporation to finance personal advances.

The aim is to improve the living conditions of the pensioners through extending payment time limits or re-compensating late payments. They will have to pay (4.5%) per year as a declining interest and (1%) per year as a risk insurance for the whole amount of the advance." In conclusion, the interest stipulated in the above advances system is usurious, so it is unlawful since Allah the Almighty says, "O ye who believe! Fear God, and give up what remains of your demand for usury, if ye are indeed believers."{Al-Baqarah, 278}. And Allah knows best.



Name *

E. mail Address *


Comment Title *

Comment *


Warning: this window is not dedicated to receive religious questions, but to comment on topics published for the benefit of the site administrators—and not for publication. We are pleased to receive religious questions in the section "Send Your Question". So we apologize to readers for not answering any questions through this window of "Comments" for the sake of work organization. Thank you.