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Description of Query : If somebody provides cash to a businessman on the situation that he can pay 5% revenue from his share of revenue. Will it embrace curiosity?
Reply: It won’t be curiosity when each are companions within the enterprise. One’s capital is one other’s labor or administration. Then any specified % (p.c) revenue may be given, that quantity of loss should even be taken. In Islam its identify is Mudaraba. Then this cash will now not be used, will probably be an funding. It’s permissible to take the prescribed proportion if the enterprise is shared in revenue and loss in accordance with all situations of Mudaraba. Not legitimate for loans.
Answered by: Allama Mufti Ubaidur Rahman Khan Nadvi
Supply: Jameul Fatawa, Encyclopedia of Islamic Fiqh and Fatwa.
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