Posts

Receiving Funding from a Commercial Bank

Ustadh Tabraze Azam is asked about receiving start-up funding from a bank that deals in riba. I am a revert to Islam doing my Bachelor’s in Computer Science and have been given a project in my field of study by a start-up (let’s call it X). X works in the domain of Computer Science. The […]

Can I Offer an Incentive When I’m Seeking a Loan?

Answered by Shaykh Faraz A. Khan Question: What is a halal form of offering incentive to a loaner when requesting a loan. I am a small business owner seeking to purchase a building/shop and I am in need of start up money. Everyone is interested in investing in exchange for a continuous percentage of profit. […]

Is Risk Sharing a Requirement for the Validity of a Musharakah Contract?

Answered by Shaykh Faraz A. Khan Question: Is risk sharing a requirement for validity of a musharakah contract? For example; Abdullah buys a house for 100k. He only has $25 k but his uncle offers to finance the remaining 75% of the house by buying shares worth $75K.  Can Abdullah guarantee a certain percentage return […]

Can I Invest in a Business for a Guaranteed, Risk-Free Return on My Investment for 5 Years?

Answered by Sidi Salman Younas Question: A family member of mine would want to start up a small business. I plan on investing in his business. He has guaranteed me a 50% annual return on my investment for 5 years. In other words, it’s a risk-free investment. I’m guessing this is not a halal investment? […]