Is it permissible or impermissible to deposit money into investment certificates and withdraw a loan whose interest is equivalent to the value of the profits?
If the intention is to deal with the bank by saving money in an investment certificate with usurious interest, and then taking a usurious loan from it such that the earned and paid interests are equal, then this transaction is forbidden. This is because an investment certificate with a fixed return is a usurious loan, and borrowing with usury is likewise forbidden. The Prophet, peace and blessings be upon him, cursed the one who consumes Riba, the one who feeds it, its scribe, and its two witnesses.
The -compliant alternative is to deal with Islamic banks that invest money and grant profits. One can engage with them in legitimate financing transactions such as Tawarruq, and the profit from the investment may cover or exceed the financing profits. "Whoever gives up something for the sake of Allah, Allah will compensate him with something better."
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- Original fatwa ID
- 177676
- Imported
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- Source text, unreviewed
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