Fatwas on Islamic Banking and Finance

Fatwas by the Egyptian Office of the Mufti – 1900- 1989

1. Subject: Prohibition of bank interest.
Question:
Is the use of Bank money permissible (Halal) or prohibited (Haram) ? Is what is taken of it for trade considered Riba or not (i.e are business loans taken from a bank at a fixed rate of interest considered to be Riba)?

Fatwa:
To take business loans from a bank at a fixed rate of interest, as is the custom now, is Riba which is altogether forbidden. Allah, the Almighty knows best.

Source:
Fatwas by the Egyptian Office of the Mufti, Supreme Council for Islamic Affairs; opinion given by Sheikh Bakri Al Sadafi, Egyptian Mufti, 27 Muharram 1325 A.H./1907 A.D.

2. Subject: Prohibition of investing deposited money for a fixed interest.

Question:
A person asks about the Shari’ah ruling on depositing the legacy of his deceased son’s two daughters in a bank for interest.
Fatwa:
Islamic law does not permit the investment of money in a bank at a fixed rate of interest because an investment such as this constitutes Riba which is prohibited by the Shari’ah.

Source:
Fatwa by Sheikh Abdel Majeed Saleem, Mufti of Egypt, 1348 A.H./ 1930 A.D
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3. Subject: Interest of bonds- is a prohibited Rlba.
Question:
If one inherits from his father Cotton Loan Bonds on which the government pays interest, is the interest accrued considered a prohibited Riba ?

Fatwa:
This interest is a type of Riba prohibited by Allah the Almighty in His Holy Book.

Source:
Fatwa by Sheikh Abdel Majeed Saleem, Mufti of Egypt, 1362 A.H.11943 A.D.

4. Subject: Taking interest for money deposited in banks is prohibited; it may not be given as alms

Question:
Is it permitted to take interest for money deposited in banks and give it as alms to the poor ?

Fatwa:
Taking interest for’ money deposited in banks constitutes Riba and is prohibited. Giving this interest as alms is unacceptable to Allah, the Almighty. He who does so has committed a sin.

Source:
Fatwa by Sheikh Abdel Majeed Saleem, Mufti of Egypt, 1362 A.H.I 1943 A.D.

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