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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

 

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Summarized Fatawaa

I work overtime after regular working hours and may become occupied with my phone or the work computer for personal matters — what is the ruling on this?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
It is obligatory upon an employee to abide by the instructions and regulations governing overtime hours, and equally obligatory to uphold honesty and avoid all forms of deception and dishonesty. Allah the Almighty says {what means}: "O you who have believed, be mindful of Allah and be with the truthful." [Al-Tawbah/ 119]
Whoever is assigned to work overtime must be present at his workplace — even if he has no specific tasks to carry out at that time. In such a case, he should strive as best he can to spend that time in a manner that benefits the institution he works for. If there is genuinely no work for him to do, there is no objection to occupying his time with something beneficial — such as reciting the Holy Qurʾān, reading, or listening to educational lessons — provided he has already completed all the responsibilities assigned to him.
If, however, he does have work to complete, he must spend that time fulfilling it. He may attend to phone calls or other personal matters to the extent that is customarily acceptable, as long as this does not result in delaying or postponing his work. If he delays his work on account of personal preoccupations, the wages he received for that wasted time are not lawfully his to keep, and he is obliged to return the equivalent amount to the institution by whatever means available to him. And Allah the Almighty knows best.

I`m in love with a certain man, and want to marry him in particular, but my family refused that, what should I do?

The father should know what is in the best interest of his daughter and consider her situation. On her part, the daughter should trust her father`s view point as far as suitors are concerned. Moreover, it is prohibited for any woman, or girl to get involved in a relation with a non-Mahram (Marriageable man).

Is it permissible for the wife to give the Zakah (obligatory charity) of her money to her poor husband?

Yes, it is permissible for the wife to give from the Zakah of her money to her poor husband. And Allah Knows Best.

Is it valid to share in the 'aqīqah by contributing a seventh share of a camel or cow?

All praise is due to Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
Yes, it is permissible. If a group of people jointly share in the slaughter of a camel or a cow on behalf of seven individuals, this is valid — regardless of whether all of them intend the 'aqīqah, or some intend the 'aqīqah, others the uḍḥiyyah, and others simply the purchase of meat. And Allah Almighty knows best.

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