A date broker lends a farmer to secure the exclusive sale of his harvest
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Fatwa number ( 20359 )
Q: Many of those who seek their livelihood engage in buying palm produce and then bringing it to the markets to sell it. They act as brokers for fresh dates and dried dates,
lending them the value of this produce or a part of it, on the condition that this buyer brings the produce to the broker who sells it at public auction and receives 10% of its value as a brokerage fee. He lends him that amount to ensure that this person brings the produce to him. This is considered a loan that yields benefit, knowing that this 10% is taken from all farmers, whether they are primary farm owners or those who buy the produce.
A: This transaction is not permissible because it involves a loan that yields benefit, and every loan that yields benefit is riba (usury or interest). Therefore, it is obligatory for you to abandon it and restrict yourselves to what Allah the Exalted has made lawful. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: Many of those who seek their livelihood engage in buying palm produce and then bringing it to the markets to sell it. They act as brokers for fresh dates and dried dates,
lending them the value of this produce or a part of it, on the condition that this buyer brings the produce to the broker who sells it at public auction and receives 10% of its value as a brokerage fee. He lends him that amount to ensure that this person brings the produce to him. This is considered a loan that yields benefit, knowing that this 10% is taken from all farmers, whether they are primary farm owners or those who buy the produce.
A: This transaction is not permissible because it involves a loan that yields benefit, and every loan that yields benefit is riba (usury or interest). Therefore, it is obligatory for you to abandon it and restrict yourselves to what Allah the Exalted has made lawful. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.