Are Prize bonds permissible ?

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Are Prize bonds permissible ?

In the name of Allah, the most Beneficent, the most Merciful.


Prize bonds also known as Inaami bonds in Pakistan is impermissible because there are elements of interest involved in the transaction. The person who buys such bonds takes the same ruling as a debtor, and every loan which involves benefit is Riba.

The Prophet of Allah Sallallahu Alahi Wasalam said: “Any lending arrangement which results in some benefits to the lender, is one of the kinds of Riba” (Sunan Baihaqi)

If they are interest free, they are still impermissible for the following two reasons:

1. It involves gambling, which Islam forbids. The bond monies are either invested or given on interest bearing loans. The profits accrued there from are collected in a draw. Thereafter, an electronic machine will pick a number with all the money going to the owner of the bonds with this number.

Allah (SWA) in the Holy Qur’an says:

O you who have believed, indeed, intoxicants, gambling, (sacrificing on) stone alters (to other than Allah), and divining arrows are but defilement from the work of Shaitan, so avoid it that you may be successful. (Surah Maaidah v.90)

2. Prize bonds could be classified as a partnership, as bond monies are jointly collected and invested, which makes all those that purchased bonds partners in the item invested. The principle in partnership is that every single partner should be liable for any profits gained or losses made. In Prize bonds, though they are partners, they do not share in the profits; rather the individual whose number has been picked receives the prize.  (Extracted from Aapke Masaail p.271 –p.278 v.6)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham.


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