I know Imran ibn Mansur is not everyone’s cup of tea, however this angle of looking at the intention of the loan company is really a killer point on the whole student loan debate which has been ongoing for the past few years in the UK
It seems strange that this fatwah even has to be posted, but due to the fitnah in the west, and specifically in the UK in regards to the official government run student loan schemes and whether they are permissible or not, I am glad somebody as reputable as Sheikh Muhammad Saalih al-Munajjid and Islam Q&A have been able to address this issue.
This is not to denigrate Sheikh Hatham al Haddad, his followers on Islam21C or anyone else who holds the opposite viewpoint. I said before others are being unfair and unjust towards him and overly harsh in their refutations of his errant opinions but when someone makes a mistake, it is important the truth of the matter is clarified.
I have a question regarding interest. Firstly I would like to make it known that all my family is Muslim and we currently reside in Western Europe. I currently am a first year University student , in my country there is something called the Maintenance loan , which is a loan that can be taken not for the sake of the tuition fees of the university but to support a student in general while studying. This loan is entirely based on interest and ican be very desirable as it has very low interest rates and must also not be paid back till one finds themselves in a stable job hence maybe 10+years. I myself glory be to Allah have no need to take this loan as I am financially stable and have grants from the university itself. However my father has told me that I should take the full amount of this loan as it has very low interest rates. I have told him I do not need this money however he wants it for his personal gain and business endeavours. I know the great risk of interest and that it is very harmful. My question is what should I do in this scenario, would sin fall onto me?
Praise be to Allah
It is not permissible for you to take this loan, no matter how low the interest rate, because Allah has forbidden contracts that involve riba, whether the riba is great or small, even if it is only one dirham, and He has warned the one who consumes it and the one who pays it of punishment, wrath and curses. So beware lest you be one of them.
“Those who eat Ribâ (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitân (Satan) leading him to insanity. That is because they say: “Trading is only like Ribâ (usury),” whereas Allâh has permitted trading and forbidden Ribâ (usury). So whosoever receives an admonition from his Lord and stops eating Ribâ (usury) shall not be punished for the past; his case is for Allâh (to judge); but whoever returns [to Ribâ (usury)], such are the dwellers of the Fire – they will abide therein.
Allâh will destroy Ribâ (usury) and will give increase for Sadaqât (deeds of charity, alms, etc.) And Allâh likes not the disbelievers, sinners.
Truly those who believe, and do deeds of righteousness, and perform As-Salât (Iqâmat-as-Salât), and give Zakât, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve.
O you who believe! Fear Allâh and give up what remains (due to you) from Ribâ (usury) (from now onward), if you are (really) believers.
And if you do not do it, then take a notice of war from Allâh and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).
And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay, but if you remit it by way of charity, that is better for you if you did but know.
And fear the Day when you shall be brought back to Allâh. Then every person shall be paid what he earned, and they shall not be dealt with unjustly”
The Prophet of Allah (blessings and peace of Allah be upon him) cursed the one who consumes riba and the one who pays it. Narrated by al-Bukhaari (5962).
It is not permissible for you to obey your father in that, because the rights of Allah and obedience to Him take precedence over the rights of the father and obedience to him. The Prophet (blessings and peace of Allah be upon him) said: “There is no obedience if it involves disobedience towards Allah; obedience is only in that which is right and proper.” Narrated by Muslim (1840).
For more information, please see the answers to questions no. 181723 and 96613.
And Allah knows best.
In the name of Allah, the Most Gracious, the Most Merciful
باسم الله والحمد لله والصلاة والسلام على رسول الله وعلى آله وأصحابه ومن والاه
What is the ruling on participating in any of these transactions or in this business? And can one make promotional material for the company, for example website, applications, or tutorial videos about Traffic Monsoon?
If there is any transaction that is impermissible, what should the Muslim who participated ignorantly do with the money he has earned through it?
Please explain the reasoning behind any impermissible transaction, and if there is any way to make it compliant with Islamic law.
Jazakum Allahu Khairan.
Text of the Fatwa:
Written by Shaykh, Dr. Ahmad ibn Rashid Ar-Ruhaily, a member of the teaching faculty at the Islamic University in Madinah, a member of the Center of Da’wah and Irshaad (Calling and guiding to Islam), and a member of the center for Guidance and Counseling (At-Tawjeeh wal Irshaad) in the Noble Prophet’s Masjid, holding a PhD in Fiqh from the Islamic University in Madinah, with a dissertation in modern financial transactions.
All praise is due to Allah, and may His praise and peace be upon His Messenger, and upon his family, companions, and those who follow his guidance. To proceed:
It is not permissible to take part in this company called Traffic Monsoon, because it involves usury, gambling, deceit and fraud.
As for usury, then he is paying fifty, and receiving fifty-five. This is usury (ribaa).
As for the product or service, then it is superficial and unintended. The reality of the transaction is money for money, with an increase and a delay. It is from the transactions that are considered schemes to usury, and in such transactions, the product or service is ignored, and the transaction is essentially money for money.
Allah – the Most High – has prohibited usury in His Noble Qur’an; Allah, the Most Mighty and Exalted, said: “O you who have believed, do not consume usury, doubled and multiplied, but fear Allah that you may be successful.” [Surat Ali-Imran, 130]. And He – the Most High – said, “Allah removes any blessing from usury.” [Al-Baqarah, 276].
The second matter: It involves gambling, and this is because a person goes in with the hope of earning. Gambling is when a person pays something, and perhaps he may profit, and perhaps he may lose. So, he is either one who wins or one who loses.
And Allah – the Most High – has prohibited gambling in His Book. He the – the Most High – said, “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 Satan, so avoid it that you may be successful. Satan only wants to cause between you animosity and hatred through intoxicants and gambling and to avert you from the remembrance of Allah and from prayer. So will you not desist?” [Surat al-Ma’idah, 90-91].
In addition, this company involves deceit and trickery. This company deceives people; it gives those who joined first their profits, and then the loss is upon those who join last.
As for promoting this company, then this is impermissible, because this involves aiding them in prohibition. This company’s [transactions] are prohibited, and advertising for them is also prohibited, because the means to a prohibited act is also prohibited. Allah – the Most High – says, “And cooperate in righteousness and piety, and do not cooperate in sin and aggression ” [Surat al-Ma’idah, 2]
As for the one who took part in this company while not knowing its ruling, and has gained some profit, then: if he already withdrew this profit before knowing it is prohibited, then there is nothing upon him, because Allah – the Most High – says regarding money gained from usury, “So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah.” [Surat al-Baqarah: 275].
However, if he did not withdraw anything before knowing that it is prohibited, then he can take the original capital that he invested, and he cannot take any of the profits. This is because Allah – the Most High – says, “O you have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your capital investments- [thus] you do no wrong, nor are you wronged” [Surat Al-Baqarah: 278-279].
And in the case that he has taken any of the profits after knowing of its prohibition, then he must get rid of this prohibited money, and he cannot benefit from it whatsoever. Thus, he should give it to fulfill the debt of his Muslim brother, for example, or he can give it to the general benefit of the Muslims, such as giving it towards building roads, buildings, and so forth, with the intention of getting rid of prohibited money, and not with the intention of drawing closer to Allah with this spending. This is because Allah is pure, and only accepts that which is pure. Thus, one cannot have the intention of giving it in charity, because it is prohibited wealth. The authentic hadeeth states, “Indeed, Allah is pure, and only accepts that which is pure.”
And Allah – the Most High – knows best.
Published by Sheikh Sajid Umar, visit for Arabic translation and more information on Traffic Monsoon
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