Interest-based loans to run or save business : interest loans to salvage business or to expand it

Fatawa Question

This question is regarding dealing with interest based business finance and whether it is allowed for a Muslim business person to involve in such finance if a) they reach a situation where if they do not get such finance the business could either go under or seriously lose its viability b) There is a need to expand the business to realize real business opportunities especially when there is no alternative available either due to its lack of existence or accessibility for your business. Surely, if all Muslim entrepreneurs stop taking interest-based business loans (especially either due to lack of accessibility or absence of Islamic finance or even non-viability of Islamic finance package) they are going to struggle to grow business albeit very slowly through organic means or become prey to severe competitive environment of the today’s business world. I do understand that we Muslim business people should support or even set-up Islamic finance initiatives but this is a strategic issue and the real question for now is what should we do in the meantime ? We cannot just simply leave non-Muslims to eat-up business opportunities (including in the Muslim world) and subsequently use the profits to suppress us !! Thank you

Fatwa

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Publication Date

2002-09-06

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Financing
• Loans
• Business
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-726568

• APA
• MLA
• AMA