• Transactions & Dealings >> Shares & Investments

    Question ID: 63040Country: India

    Title: Investments in well known Indian companies

    Question: I read in previous Fatwa that if we come to know after investing in a company that they have taken loan and pay interest for that, then we should raise our voice "against interest payment" in annual general meeting of that company. But nowadays we can know whether a company has taken loan and pay interest for that through website and newspapers as each and every company has to give their financial information at every three month period. Blue Chip Companies such as Tata, Godrej, Maruti, Mahindra all take small loans and pay small amount of interest. In some cases interest portion will be only 1 or .01 percentage of their profit. My question is can we invest in Indian Blue Chip companies (or other companies) when we are informed of the loan and its interest payment (before investing) through their websites and newspapers? What is the rule when loan and interest is only a small portion when compared to the profit a company makes?

    Answer ID: 63040

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 320/333/L=04/1437) If most of the business of the company is halal, the company is Shariah compliance, though they are involved in nominal interest, then it is allowable to invest in such companies. However whatsoever amount is received from the interest based business it is necessary to be given it in charity to the needy and poor ones without any intention of reward. لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه (شامى: 9/553)

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India