Entering into a partnership with a person whose capital will be from an interest bearing loan
Question
My brother wants to enter into a partnership business with another person whose initial investment in business is taken from an interest bearing loan. Is he allowed to enter into a partnership business with him? Will the profits earned by that business be halaal or haraam?
Answer
The partnership is permissible, but it is not advisable to take such a person as a partner who is not conscious about deen.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Ebrahim Salejee (Isipingo Beach)
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.