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The question

Is the amount taken from a friend in exchange for a fixed monthly profit considered usury (riba)?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

The Mudarabah company (partnership) is when one person gives his money to another to trade with it, and the profit is shared between them according to their agreement. For it to be permissible, the profits must be a known percentage of the profit, such as half or a third. It is not permissible for it to be a known percentage of the capital, such as 10% monthly from it, nor a known amount of dirhams, such as 1000 dirhams monthly. If any of these conditions are stipulated, the contract is invalid and unlawful by the consensus of scholars.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
17873
Imported
Translation status
Source text, unreviewed
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