Resolutions of Iftaa' Board



Resolutions of Iftaa' Board

Date Added : 25-11-2015

 

Resolution No.(196)(5/2014) by the Board of Iftaa`, Research and Islamic Studies:

"The Permissibility of Levying Administrative Fees for the Loans Taken from the Governorates Development Fund"

Date: 17/Rabee` Al-Awal/1435 AH, corresponding to 17/2/2014.

 

All perfect praise is due to Allah, The Lord of The Worlds; and may His peace and blessings be upon our Prophet Mohammad and upon all his family and companions:

On the above date, the Board reviewed the letter of the Jordan Enterprise Development Corporation, which reads as follows:

The Governorates Development Fund offers financing through an interest-free loan (Hassan), up to (70%) from the overall cost of the enterprise. The loanee is required to repay in installments over a period of eight years, including a two-year grace period. This is in order to re-use that same amount for financing new enterprises to benefit as many individuals as possible. Moreover, up to (10%) of the enterprise`s profit is deducted in case a profit was produced so as to protect the capital of the Fund to guarantee its continuity, because it is usually used for re-loaning, and no profits are redistributed, or given back to the government. In case of loss, the installments of the interest-free loan are to be repaid, without adding any interest, or profit, and it is possible to delay repayment if the loanee is in a hard up and after examining the reasons for his loss. Based on the afore-said, what is the ruling of Sharia as regards this financing mechanism adopted by the Jordan Enterprise Development Corporation?

After researching and deliberating, the Board decided what follows:

Offering loans to owners of small businesses is an accepted act of charity. It achieves comprehensive development, uproots poverty, increases individual productivity, and helps develop the areas where these enterprises are established.

Therefore, the financing mechanism adopted in the above question is an instance of clear Riba (usury) which has been prohibited by Allah, The Almighty, and His Messenger. It is impermissible for the above Fund to receive a percentage from the profits of the enterprises it finances. However, it is permissible to calculate the actual costs of offering these loans and collecting them, such as salaries of employees, paperwork, rent.. etc. but without the smallest addition, and this could be achieved through imposing a fixed amount of administrative fees. These shouldn`t be tied with the loan`s repayment period, or the enterprise`s profit; rather, they should be tied with the costs necessary for securing the continuity of the Fund, without making any profit by the loaning party. In fact, the Jordan Iftaa` Department, the accredited Fiqh assemblies, and the religious institutions have issued many Facosststwas that permit charging the loanee for the administrative fees of the loan since we believe that it  is the most suitable solution from the perspective of Islamic Sharia. We pray that Allah, The Exalted, Favors us and the Fund`s administrative board with success in serving the community and that their business remains within the boundaries of what is lawful. And Allah Knows Best.

 

Chairman of the Iftaa` Board, The Mufti General of the Hashemite Kingdom of Jordan, His Grace Sheikh Abdulkareem Al-Khasawneh.

Prof. Hayel Abdulhafeez/ Member

Dr. Yahia Al-Botoosh/ Member

His Eminence, Sheikh Sa`ied Hijjawi/ Member

Prof. Mohammad Al-Qudat/ Member

Prof. Abduln`nassir Abu Al Bass`al/ Member

Dr. Mohammad Al-Khalayleh/ Member

Dr. Mohammad Al-Zou`bi/ Member

Dr.Wasif Al-Bak`kri/ Member

Dr. Mohammad Khair Al-Esa

 

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Summarized Fatawaa

Is Buying a house in installments through banks?

Taking a loan from interest-based banks is prohibited and considered a major sin. Instead Getting a loan from Islamic banks is considered Murabaha and can be used as an alternative, provided all the necessary Islamic conditions are met. And Allah Knows Best.
 
 
 
 
 
 
 
 

 By slip of the tongue, my son cursed Allah. It is worth pointing that he has concluded his marriage contract recently, but haven`t consummated the marriage. What is the position of Sharia on this? 

All perfect praise be to AllahThe Lord of The Worlds and may His Peace and Blessings be upon our Prophet Muhammad and upon all of his family and companions. 
This person must return to the fold of Islam by uttering the two testimonies of faith and making repentance to Allah from all acts that lead to disbelief. Also, he must make a new marriage contract because the old one was dissolved after he had committed this act of disbelief. Moreover, since there is no waiting period for his wife, then she is in state of Talaq ba`en baynona Soghra (Minor irrevocable divorce); consequently, she can get back to him only by a new marriage contract. And Allah The Almighty Knows Best. 

I`m a cashier at a branch of the Civil Service Consumer Corporation. Sometimes, customers pay more than the due amount. Do I have the right to take that extra money knowing that I cover shortages from my own salary?

All perfect praise be to Allah the Lord of the Worlds. May Allah`s peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
If customers give that money willingly to help you with the potential loss then this is permissible. And Allah The Almighty Knows Best.

Is Zakah due on a woman`s deposited gold?

Zakah (obligatory charity) is due on deposited gold if it reached Nissab (minimum amount liable for Zakah), and a lunar year had lapsed over owning it. The due Zakah is (2.5%). And Allah Knows Best.