{"id":33343,"date":"2024-10-24T10:50:32","date_gmt":"2024-10-24T10:50:32","guid":{"rendered":"http:\/\/daruliftabirmingham.co.uk\/home\/?p=33343"},"modified":"2024-12-02T05:42:35","modified_gmt":"2024-12-02T05:42:35","slug":"is-this-transaction-riba","status":"publish","type":"post","link":"https:\/\/daruliftabirmingham.co.uk\/home\/is-this-transaction-riba\/","title":{"rendered":"Is This Transaction Riba"},"content":{"rendered":"

Fatwa ID: 07584<\/strong><\/span><\/p>\n

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Answered by Alimah Shireen Mangera-Badat<\/strong><\/span><\/p>\n

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Question<\/strong><\/span><\/p>\n

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I got to know about an app in which if I deposited 2600 bucks then the app will give me 100 bucks in return on a daily basis. Is that money haram, does that money come under riba according to Islam?<\/span><\/p>\n

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In the name of Allah, the Most Gracious, the Most Merciful<\/b><\/span><\/p>\n

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Answer<\/b>\u00a0<\/span><\/span><\/p>\n

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In addressing your question regarding whether the money earned through an app that promises a daily return on a fixed deposit falls under\u00a0<\/span>riba (interest)<\/b>\u00a0and is considered haram in Islam.<\/span><\/span><\/p>\n

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  1. Understanding Riba (Interest) in Islam<\/b><\/span><\/li>\n<\/ol>\n

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    Riba<\/b>\u00a0refers to any guaranteed increase on a loan or deposit without a corresponding service or trade. The Qur’an explicitly prohibits riba, and the prohibition is severe in all schools of thought, including the Hanafi school. Any transaction where money generates money without any legitimate trade or service is considered riba, and it is haram (forbidden).<\/span><\/span><\/p>\n

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    1. Fixed Return on Investment (Without Risk or Trade)<\/b><\/span><\/li>\n<\/ol>\n

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      If the app guarantees you a fixed return (e.g., 100 bucks daily) on your deposited amount (2600 bucks) without engaging in any actual business, trade, or service, this falls directly under\u00a0<\/span>riba<\/b>. In Islamic finance, a return on investment must be tied to\u00a0<\/span>risk-sharing<\/b>\u00a0in a business or trade. If you are guaranteed a return without any risk, this is considered interest, which is haram.<\/span> In this case, if you are depositing money and receiving a fixed return without any trade or business activity, it constitutes riba.<\/span><\/span><\/p>\n

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      1. Investment in Islam<\/b><\/span><\/li>\n<\/ol>\n

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        In Islam, for an investment to be halal, the money must be used in legitimate business ventures where there is both potential for profit and risk of loss. This is known as\u00a0<\/span>Mudarabah<\/b>\u00a0(profit-sharing) or\u00a0<\/span>Musharakah<\/b>\u00a0(partnership).<\/span> Any arrangement that promises a fixed return without engaging in a legitimate business or bearing the risk of loss is impermissible.<\/span><\/span><\/p>\n

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        1. Conclusion<\/b><\/span><\/li>\n<\/ol>\n

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          • The money you receive from the app, if it guarantees a fixed return (100 bucks daily) on your deposit (2600 bucks) without any trade or business activity, falls under\u00a0<\/span>riba<\/b>\u00a0and is\u00a0<\/span>haram<\/b>\u00a0according to Hanafi Fiqh.<\/span><\/span><\/li>\n
          • In Islam, investments must involve real business or services where the investor bears both profit and loss risks. Guaranteed returns on deposits are not permissible.<\/span><\/li>\n<\/ul>\n

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            Thus, it is advisable to avoid such transactions to ensure that your earnings are halal and free from riba.<\/span><\/p>\n

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            Only Allah knows best.<\/span><\/p>\n

            Written by <\/span>Alimah Shireen Mangera-Badat<\/span><\/span><\/p>\n

            Checked and approved by Mufti Mohammed Tosir Miah<\/span><\/p>\n

            Darul Ifta Birmingham<\/span><\/p>\n

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            \u00a0“\u0643\u0644 \u0642\u0631\u0636 \u062c\u0631 \u0646\u0641\u0639\u0627 \u0641\u0647\u0648 \u0631\u0628\u0627”<\/span>
            \n<\/span>(<\/span>Al-Hidaya<\/span><\/i>, Vol. 3, Pg. 160)<\/span><\/span><\/p>\n

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            \u00a0Iqtisaadi Islaami, page 13- footnotes<\/span><\/p>\n

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            \u00a0“\u0648\u0644\u0627 \u064a\u062c\u0648\u0632 \u0644\u0644\u0645\u0633\u0644\u0645 \u0623\u0646 \u064a\u0633\u062a\u0631\u0628\u062d \u0639\u0644\u0649 \u0645\u0627\u0644 \u0625\u0644\u0627 \u0641\u064a \u062a\u062c\u0627\u0631\u0629 \u0645\u0634\u0631\u0648\u0639\u0629 \u0623\u0648 \u0639\u0645\u0644 \u0645\u0646\u062a\u062c”<\/span>
            \n<\/span>(<\/span>Fath al-Qadir<\/span><\/i>, Vol. 6, Pg. 65)<\/span><\/span><\/p>\n

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            Fatwa ID: 07584     Answered by Alimah Shireen Mangera-Badat   Question   I got to know about an app in which if I deposited…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/33343"}],"collection":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/comments?post=33343"}],"version-history":[{"count":5,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/33343\/revisions"}],"predecessor-version":[{"id":34083,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/33343\/revisions\/34083"}],"wp:attachment":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/media?parent=33343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/categories?post=33343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/tags?post=33343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}