• Transactions & Dealings >> Business

    Question ID: 51104Country: India

    Title: doing business with FIXED MONTHLY INCOME is haram ?

    Question: I have invested money with one friend, now he runs business of sheet metal fabrication with his son and a partner. He is also doing a job with some company and the business is taken care by his son and other partner. Now he pays me monthly fixed income from this investment around Rs 6000, is this interest as its fixed or what shall I do to get pure halal income from this investment. He says let us not thinks it as interest, take this as profit as he is also a Muslim (bida’ti).

    Answer ID: 51104

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 417/314/L=05/1435) It is necessary for partnership that the percentage is fixed out of total profit i.e. as much profit is availed; a certain percentage of it is fixed. It is not lawful to take a fixed profit as it shall invalidate the partnership. If you want to invest with your friend then you should fix the percentage out of total profit. In case of loss each partner should bear the loss as per the capital amount and in case of taking fixed percentage from the business usually both these two points are not maintained.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India