What is the ruling on one who lends money to a person for him to invest it or to utilize its profits?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is impermissible to take a stipulated increase from the borrower; this is usury (riba), forbidden by the Qur'an, , and scholarly consensus. It is permissible to give money to be invested on the condition that the profit and loss are shared proportionally between the two parties. This is a legitimate (profit-sharing partnership).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/35908
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 35908
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy