Selling Wine
Question :

I gave a loan to an unemployed person, and then he found work in selling wine. After he earned money through this work he repaid his debt to me. Is this money lawful for me?

Answer :

If he was selling the wine to Muslims only then his money is unlawful, if he was selling it to non-Muslims, and paid off his debt from this money then it is permissible to use the given money. The same applies if he was selling the wine to both Muslims and non-Muslims.

Mortgages
Question :

Is it permissible to work in determining the eligibility of customers to take out mortgage loans from various lending companies? Is the income of such an employee who deals in such a way with interest-based loans considered lawful?

Answer :

It is prohibited to draft or write the contract for the loan agreement that involves interest or to do anything that is related to it, like calculating the balance of what the client owes. It is permissible to work in determining the eligibility of the customer to take the loan.

Guaranteed Lending
Question :

If an interest-free loan has been given for a two-years fixed period, against guaranteed gold value. is this deal permissible?

Answer :

Yes, this is permissible.

Lending Institution
Question :

A lending institution asks people who are interested in borrowing to bring a guarantee of gold jewelry. They value the gold by their authorized goldsmith to be less than the market value. Is it allowed to borrow from such an institute?

Answer :

If the guaranteed gold is valued to be less than its market value and such a way of estimation is a condition in the transaction, then such a deal is invalid.

Loan with Guarantors
Question :

If an interest-free loan is given with the guarantee of two people, i.e. if the borrower doesn’t return the amount on the due date, the guarantors will be obligated to pay the entire amount, is such a transaction permitted?

Answer :

Yes, it is permissible.

Monthly Payments
Question :

In a loan contract, the lender arranges for the return of his money by monthly payments given to him by signed checks. Is this deal is permissible?

Answer :

If the amounts of the checks add up to be the exact borrowed amount, then the agreement is valid.

Credit Card Usage
Question :

I want to ask about the use of credit cards. With credit cards, there is an initial period in which the loan can be repaid without any interest. But any balance remaining after that period, interest will be added to the balance. Is this permitted?

Answer :

It is permissible to use the credit card without intending to form a contract.

Mobile Company Credit
Question :

Some mobile network companies offer loans for those who have ran out of balance, but charge an extra fee as well, either as interest or in lieu of this service. Is it permitted to take such loans?

Answer :

If you have ran out of credit on your mobile phone service and the company offers to lend you extra credit in exchange of a fee, which will be deducted the next time you add credit in the future, this is not permitted.
If the company is offering to provide you with extra credit but with a greater price than if you were to pay for the same credit in cash, then the deal is permissible.