What is the ruling on joining a cooperative society that allows borrowing double the savings after repaying the debt, and are its terms permissible according to Sharia?
If the association has various charitable activities, then there is no harm in charging membership fees from members, and then lending them interest-free loans (). However, if its activity is limited to lending, then the membership fees are considered forbidden usurious interest, because it is a loan that draws a benefit. Similarly, conditional savings for obtaining a loan, if it means a reciprocal loan between the member and the association, is forbidden because it falls under the rule "every loan that draws a benefit is usury."
Therefore, it is not permissible to borrow from this association or to subscribe to it if it results in a benefit for the association in exchange for the loan.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 16948
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- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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