The Ruling on Associations Among Employees

Question:
He says: What is the ruling on what is called associations among employees or others, and what is the ruling on one who takes a fee from these people for collecting these funds, while he is one of them and benefits from this association?

Answer:
In my view, all of this is not permissible; because this is mutual lending, so it is a loan that brings benefit, and in the hadith and the scholars have agreed upon that, so they lend to each other, you lend to this one on the condition that he lends to you, each one lends to the other on the condition that he lends to him, so it is also two sales in one sale, which the Messenger of Allah (peace and blessings be upon him) prohibited, so I hold that this is not permissible, and whoever needs to borrow should borrow from his brother and then repay him without being tied to a group or association, yes.