Message No : 12Sr.No : 376/725
Question By : UmarFauk Memon

Assalamoalaykum
Most of the companies are taking loans from the banks on interest to cover 80% requirement of their financial needs for their industries and organisations.Out of which they get profites and some percentage of profit they devided among their share holders.How it is permissible under the sharriah even if 80%amount is from loan for the bussiness of companies whose share the muslim having?

 

Reply By : Md. Asad
Designation : Mufti, ODI, MMERC, Mumbai 

In the name of Allah the most gracious the most merciful

The answer to your question is as follows:

(1) Firstly you should have provided the reference to the answer.
(2) As I remember my answer was containing two condition: (a) the company, you are investing in, is doing Halal business,(b) the company divides total profit among the shares.
In your mentioned case, the conditions stated above are not found. Because the company based on interest caní»t deal with Halal business. So investing in such companies based on interest can not be permissible under Islamic law.

And Allah (swt) Knows the Bes

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