The Ruling on a Mutual Aid Association Among Employees

Question:
He says: I and some of my colleagues are going to establish an association where each person contributes two thousand riyals for a period of four months. What is the ruling on this?

Answer:
What? He says: Some of my colleagues are going to establish a mutual aid association for the amount of the salary of each person for a period of four months. An association for what purpose? For the sake of the one who is being supported, so they avoid the deduction of two thousand riyals from the salary per month, meaning it rotates among them every month. This is a loan, this is a loan. They collect the amount and lend it to one of them. This is a loan that brings benefit, or a conditional loan. Therefore, it is not permissible. If you need a loan, go to one of your brothers and borrow from him, and repay his loan to him afterwards when you are able. This is the prescribed loan. As for this association, it falls under the prohibition of two sales in one sale, and every loan that brings benefit. Do not enter into this. Yes.