They collect funds, and then each member of the group has the right to borrow
Machine translationRead the Arabic original
Q1: There is a group that saves an amount of 500 riyals monthly, and then, once the funds accumulate and form sums, they begin to lend to the savings participants only as a good loan, to be repaid in installments . The question is: What is the ruling in the Shari'ah if this group or association requires that, in order to give a loan to a new participant who is not among the participating members, the condition is that he pays the amount of savings they have reached?
Then, after that, they give him more or less than the savings amount. Does this fall under the saying of the Prophet (peace and blessings be upon him): or not? I hope you will inform me, and may Allah reward you with good.
A1: The agreement inquired about in the question is a prescribed agreement; because the original ruling for contracts is validity, except for what evidence indicates is forbidden, and the scenario inquired about does not fall under the hadith referred to in the question; because the benefit returns to all the participants in this agreement.
Then, after that, they give him more or less than the savings amount. Does this fall under the saying of the Prophet (peace and blessings be upon him):
Any loan that brings benefit is usury or interest
أيما قرض جر نفعًا فهو رباA1: The agreement inquired about in the question is a prescribed agreement; because the original ruling for contracts is validity, except for what evidence indicates is forbidden, and the scenario inquired about does not fall under the hadith referred to in the question; because the benefit returns to all the participants in this agreement.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.