Charging a service fee for lending money
Question
Is lending money by a Muslim for a standard service fee halaal? If not, what is the permissible way of a Muslim lending money?
Answer
This enters under the definition or riba (interest). Hence, it is not permissible. The extra money earned through a loan is riba (interest).
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Zakaria Makada
- Checked & approved by
- Mufti Ebrahim Salejee (Isipingo Beach)
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