Is the MMM system, which relies on mutual financial assistance between members with a 30% increase, considered usury?
Contributing to such financial groups has two aspects:
The First Aspect: If the contribution is a form of cooperative insurance and donation to meet urgent needs such as death, marriage, or an accident, whereby the needy person is given an amount that may exceed his contribution. This is permissible and there is no objection to it. is not obligatory on donated funds as long as they do not revert to the donors in their private capacity.
The Second Aspect: If the intention is not to donate, but rather for the contributor to pay an installment to receive a larger amount later. This falls under the category of usury, as if it were a loan-for-loan transaction, where each contributor pays an installment to receive more than what he paid. This is impermissible.
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