Is there a Sharia problem with depositing money on a website that lends to those in need for interest, knowing that the depositor does not take interest and their intention is solely to help?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The lending service "Kiva" does not earn interest, and similarly, "PayPal" does not take a commission. The issue lies with Kiva's local partners who provide the loans and request a "nominal interest." If these fees approximate the customary rent (Ajrat al-Mithl) and are not tied to the loan amount, they can be considered rent or administrative fees. However, if they result in a benefit for someone other than the borrower, they are considered usury (riba) and invalidate the loan. The lender should ensure that the loan does not bring any benefit to someone other than the borrower, and if possible, direct lending is preferable.
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 166663
- Imported
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