Is it permissible for me to lend my company money in exchange for 2% of the profits monthly?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The aforementioned proposal consists of bonds or investment certificates, which are guaranteed loans from the capital owner to the issuing company. The company undertakes to repay these loans with a guaranteed interest. This type of transaction is Islamically impermissible because it constitutes Riba (usury/interest). The Islamic Fiqh Academy has issued a resolution prohibiting dealing with these bonds. It is forbidden to enter into this contract, participate in its issuance, or assist in it, due to Allah's saying: "And cooperate in righteousness and piety, but do not cooperate in sin and aggression."
Summarized from the full answer at Ftawy · imported
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- Ftawy
- Original fatwa ID
- 88064
- Imported
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- Source text, unreviewed
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