Taking an interest bearing loan to start a business

· 16 Safar 1440 AH1 min readEnglish
Business and DealingsInterest and GamblingInterest bearing loans & Transactions

Question

I live in a country where all systems of the government are un-islamic. Most of the time our non-Muslim counterparts enjoy all the benefits from certain policies of the government. For instance, the government set aside a multi-billion amount of money to help small, medium and large scale entrepreneurs with a single-digit interest loan, having a single-digit interest loan by a good entrepreneur is viable but for the Muslim, even less then 1% interest is haram.

Consider myself as a case study, I have a viable business idea and I spent almost a year finding a way and manner to finance it, by either interest-free loan, partnership or any Islamic accepted way but I couldn't get it. As a professional accountant I have a "masters degree in accounting and financial management". I know how to secure and manage the government loan but I doubt whether or not it is permissible in Islam when considering the above situation.

Answer

May Allah Ta`ala reward you for your wishing well for the Muslims. We are in no position to reinterpret interest. When Allah Ta`ala has declared it haraam and destructive it will definitely destroy, though the destruction may not be visible immediately.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
Ask Mufti Online

Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.