What is the ruling on participating in an association where each employee pays a fixed monthly sum, and each participant receives the agreed-upon amount in sequence, such that each of them gets back what they paid without increase or decrease?
Most contemporary scholars view the "Jam'iyyah" (cooperative savings and loan association) that people commonly engage in as permissible. It existed in the past and was called "al-Jum'ah." A majority decision from the Council of Senior Scholars was issued deeming it permissible, and Sheikh Abdul Aziz bin Baz and Sheikh Muhammad bin Uthaymeen both issued fatwas (religious edicts) allowing it. Some scholars, such as Saleh Al-Fawzan, disagreed and held the view that it is forbidden. Supporters believe that it harms no one; rather, it benefits everyone, and the loan involved does not yield any excessive benefit for anyone.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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