What is the Islamic legal ruling on a family cooperative fund investing its money in purchasing goods and then selling them to members in installments at an increased price, or lending them cash loans in exchange for a fixed administrative fee?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to establish a cooperative fund with -compliant controls, and to sell goods in installments at a higher price (Murabaha for the one who commands the purchase) is permissible. As for lending with the payment of fixed fees exceeding the principal amount of the loan, it is not permissible because it is usury (riba).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/37508
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 37508
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy