عربي
Home


Resolutions of Iftaa' Board


Resolutions of Iftaa' Board

Resolution No.(196): "The Permissibility of Levying Administrative Fees for the Loans Taken from the Governorates Development Fund"

Date Added : 25-11-2015

 

Resolution No.(196)(5/2014) by the Board of Iftaa`, Research and Islamic Studies:

"The Permissibility of Levying Administrative Fees for the Loans Taken from the Governorates Development Fund"

Date: 17/Rabee` Al-Awal/1435 AH, corresponding to 17/2/2014.

 

All perfect praise is due to Allah, The Lord of The Worlds; and may His peace and blessings be upon our Prophet Mohammad and upon all his family and companions:

On the above date, the Board reviewed the letter of the Jordan Enterprise Development Corporation, which reads as follows:

The Governorates Development Fund offers financing through an interest-free loan (Hassan), up to (70%) from the overall cost of the enterprise. The loanee is required to repay in installments over a period of eight years, including a two-year grace period. This is in order to re-use that same amount for financing new enterprises to benefit as many individuals as possible. Moreover, up to (10%) of the enterprise`s profit is deducted in case a profit was produced so as to protect the capital of the Fund to guarantee its continuity, because it is usually used for re-loaning, and no profits are redistributed, or given back to the government. In case of loss, the installments of the interest-free loan are to be repaid, without adding any interest, or profit, and it is possible to delay repayment if the loanee is in a hard up and after examining the reasons for his loss. Based on the afore-said, what is the ruling of Sharia as regards this financing mechanism adopted by the Jordan Enterprise Development Corporation?

After researching and deliberating, the Board decided what follows:

Offering loans to owners of small businesses is an accepted act of charity. It achieves comprehensive development, uproots poverty, increases individual productivity, and helps develop the areas where these enterprises are established.

Therefore, the financing mechanism adopted in the above question is an instance of clear Riba (usury) which has been prohibited by Allah, The Almighty, and His Messenger. It is impermissible for the above Fund to receive a percentage from the profits of the enterprises it finances. However, it is permissible to calculate the actual costs of offering these loans and collecting them, such as salaries of employees, paperwork, rent.. etc. but without the smallest addition, and this could be achieved through imposing a fixed amount of administrative fees. These shouldn`t be tied with the loan`s repayment period, or the enterprise`s profit; rather, they should be tied with the costs necessary for securing the continuity of the Fund, without making any profit by the loaning party. In fact, the Jordan Iftaa` Department, the accredited Fiqh assemblies, and the religious institutions have issued many Facosststwas that permit charging the loanee for the administrative fees of the loan since we believe that it  is the most suitable solution from the perspective of Islamic Sharia. We pray that Allah, The Exalted, Favors us and the Fund`s administrative board with success in serving the community and that their business remains within the boundaries of what is lawful. And Allah Knows Best.

 

Chairman of the Iftaa` Board, The Mufti General of the Hashemite Kingdom of Jordan, His Grace Sheikh Abdulkareem Al-Khasawneh.

Prof. Hayel Abdulhafeez/ Member

Dr. Yahia Al-Botoosh/ Member

His Eminence, Sheikh Sa`ied Hijjawi/ Member

Prof. Mohammad Al-Qudat/ Member

Prof. Abduln`nassir Abu Al Bass`al/ Member

Dr. Mohammad Al-Khalayleh/ Member

Dr. Mohammad Al-Zou`bi/ Member

Dr.Wasif Al-Bak`kri/ Member

Dr. Mohammad Khair Al-Esa

 

Decision Number [ Previous | Next ]


Summarized Fatawaa

What are the conditions for a valid Udhiyah?

Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.
 
First: The age of the animal must meet the Sharia requirements. These requirements vary depending on the type of sacrifice:
 
Camels: Must have completed five years and entered their sixth.
 
Cows: Must have completed two years and entered their third.
 
Goats: Must have completed two years and entered their third. As for Sheep, they must have completed one year and entered their second.
 
Some scholars have permitted goats that have completed one year and entered their second.
 
The Hanafi school, along with an opinion in the Maliki school, permits sacrificing sheep that are at least six months old, provided they are healthy and physically substantial. According to the Shafi’i school, it is permissible if the sheep sheds its front teeth (ajdha') before reaching one year [Al-Iqna’, by Al-Shirbini (Vol.2/P.588)].
 
Second: Soundness and freedom from defects. The animal must be free from any defect that causes a decrease in its meat or market value. This is based on the hadith narrated by Al-Bara' bin 'Azib, that the Prophet (peace be upon him) said:
 
"Four [defects] are not permissible in sacrifices: A one-eyed animal whose blindness is evident, a sick animal whose illness is evident, a lame animal whose lameness is evident, and an emaciated animal that has no marrow in its bones." [Reported by Abu Dawood and Al-Tirmidhi, who graded it as authentic].
 
These defects are detailed as follows:
 
Evident Lameness: It is not permissible to sacrifice a lame animal if the lameness is severe enough to prevent it from walking to the pasture or seeking food, as this leads to a decrease in its meat. However, slight lameness that does not hinder its grazing is overlooked.
 
Evident Blindness (One-eyed): It is not permissible to sacrifice a sheep, cow, or camel that has a white film over its eye blocking light, or one that has lost an eye entirely. Weak vision that does not affect its ability to eat does not prevent the sacrifice from being valid.
 
Evident Illness: An animal with a clear sickness that prevents it from eating or moving is not valid. This includes severe mange (Jarab) that spoils the meat.
 
Extreme Emaciation: An animal so thin that there is no marrow left in its bones is invalid. The standard for emaciation that invalidates the sacrifice is that which spoils the quality of the meat to the point that people would find it undesirable even in times of plenty.
 
Additional Considerations:
These are the defects mentioned in the Prophetic tradition, and any defect that causes emaciation or reduces the meat or value is compared to them by analogy. This includes animals that are mentally unstable (diseased), those with mange, or those with a missing ear. In contrast, a slit or pierced ear does not affect the validity of the sacrifice. And Allah the Almighty knows best.

What is the ruling on swallowing saliva while fasting?

It is permissible for a fasting person to swallow their saliva because avoiding it would cause undue hardship and excessive strictness in religion. Islam discourages such excessiveness since Allah the Almighty intends ease for His followers and does not intend to put them in hardship.

What is the ruling on Tarawih prayer?

Tarawih prayer is a confirmed Sunnah (Sunnah Mu’akkadah).

What is the ruling on offering an Udhiyah on behalf of another with their permission?

Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.
 
It is permissible for a person to offer a sacrifice (Udhiyah) on behalf of someone else with their permission, even if the person performing it has not offered a sacrifice for themselves. It is stated in Sharh Manhaj al-Tullab (Vol.5/P.261) by Zakariya al-Ansari: "No one may offer a sacrifice on behalf of another without their permission... as opposed to when permission has been granted." And Allah the Almighty knows best.

See More