عربي
02 Jamadi al-Awwal 1443  ,  07 December 2021

The General Iftaa` ... Date Added: 25-10-2020

Prophet Mohammad (PBUH) ... Date Added: 24-09-2020

Statement on the so-Called ... Date Added: 30-01-2020

Ijtihad & Taqlid Date Added: 27-01-2020

The Family and Ramadan Date Added: 26-04-2021

The Pandemic Absolves a ... Date Added: 15-03-2021

Forbearance is the Basis ... Date Added: 04-01-2021

The Participation in ... Date Added: 11-11-2020

Fatawaa


Subject : Ruling on "Loan Contract" of the National Electricity Company Provident Fund

Fatwa Number : 3263

Date : 18-12-2016

Classified : Usury (interest) &Loans

Fatwa Type : Search Fatawaa


Question :

What is the ruling of Sharia on the "Loan contract" of the National Electricity Company Provident Fund?



The Answer :

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

Having examined the attached copy of the above "Loan contract," it was found out that it is a contract of a usurious loan since stipulating a percentage of Murabaha on the loan contract makes it usurious contract. This is as stated in article (3) of the attached contract, which reads: "The Murabah percentage on this contract is 4% per year." This is knowing that lending money with stipulating an interest is forbidden usury. The evidence on this is that Allah says {What means}:" O ye who believe! Fear God, and give up what remains of your demand for usury, if ye are indeed believers. If ye do it not, Take notice of war from God and His Apostle: But if ye turn back, ye shall have your capital sums: Deal not unjustly, and ye shall not be dealt with unjustly." {Al-Baqara, 278-279}.

In conclusion, the attached contract isn`t valid and thus it is impermissible to be part of it. And Allah the almighty knows best. 




Comments

 

Name *

E. mail Address *

Country

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to receive religious questions, but to comment on topics published for the benefit of the site administrators—and not for publication.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.