Borrowing on interest from own 401 k account

Fatawa Question

Salam I work for a company in the United States that offer a retirement plan known as 401 k plan investing in stocks. As an employee I am eligible to borrow half of my amount invested. However, part of the borrowing conditions is you return the money over a certain period of time and you are charged interest on the money. The interest is paid to your account (this is the key issue here). The principal and the interest go back to your own investment plan. Is borrowing the money acceptable ? Salam Omar

Fatwa

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Publication Date

2001-04-30

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Loans
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-726581

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• MLA
• AMA