Fatwa ID: 07917

 

 

Answered by Aalimah Khadija Tarwala

 

 

Question:

 

 

Assalamu Alaikum wa Rahmatullahi wa Barakatuh,

 

I hope you are doing well. I would like to seek your guidance regarding a situation I am facing in my business plans. I recently pitched my business idea to an investor, and he has shown interest in investing. However, I believe that he currently has a loan account with a conventional bank. He deals with the bank, pays interest, and his financial dealings involve riba (interest).

 

If I proceed to accept his investment, knowing that his finances are tied to such transactions, would this be permissible in Islam?

 

I wish to ensure that my business dealings and income remain halal and free from any association with haram practices.

 

 

 

 

 

 

In the name of Allah, the Most Gracious, the Most Merciful

 

 

Answer:

 

 

Walikum asalaam warhamtullahi wa baraktu,

 

It is not permissible to accept investment from someone whose financial dealings involve riba (interest). Even if the investor’s riba-based transactions are not directly part of your business, accepting such an investment could indirectly link your business to haram (forbidden) practices. Islam requires that all sources of income and investments to be halal. If you are aware that it is coming form a loan that is interest based, it should be avoided.

May Allah make your business successful and halal.

 

 

Only Allah knows best.

Written by Aalimah Khadija Tarwala.

Checked and approved by Mufti Mohammed Tosir Miah.

Darul Ifta Birmingham.

 

 

References

 

 

أما في الربويات لا يمكنه تضمين النقصان مع استرداد الأصل؛ لأنه يؤدي إلى الربا.
كتاب البناية شرح الهداية [بدر الدين العيني] ج11: ص: , Dar Al-Kutub Al-Ilmiyyah – Beirut, Lebanon197