The Ruling on Recurring Loans Among Employees
Machine translationRead the Arabic original
Question:
This one, O Shaykh, is asking about cooperative associations that employees run these days.
Answer:
By Allah, this requires research. Those who gather from among the employees, where each pays an amount and one of them takes it this month, the second month the second one takes it, and so on—I call this a recurring loan. I do not permit this matter because it is a loan that yields a benefit, for you did not lend to your colleagues except on the condition that they lend to you. This is a condition that makes the loan yield a benefit. Also, it is a conditional contract, and the Prophet (peace and blessings be upon him) forbade two sales in one sale. You say, “I will not lend to you until you lend to me,” or “I will not sell you this cup except on the condition that you sell me this carpet.” This is two sales in one sale, and it is not permissible. Similarly, “I will not lend to you until you lend to me” falls under two sales in one sale, and it is not permissible. Even though some scholars have permitted this, I have reservations about it and do not see it as permissible. Yes.
This one, O Shaykh, is asking about cooperative associations that employees run these days.
Answer:
By Allah, this requires research. Those who gather from among the employees, where each pays an amount and one of them takes it this month, the second month the second one takes it, and so on—I call this a recurring loan. I do not permit this matter because it is a loan that yields a benefit, for you did not lend to your colleagues except on the condition that they lend to you. This is a condition that makes the loan yield a benefit. Also, it is a conditional contract, and the Prophet (peace and blessings be upon him) forbade two sales in one sale. You say, “I will not lend to you until you lend to me,” or “I will not sell you this cup except on the condition that you sell me this carpet.” This is two sales in one sale, and it is not permissible. Similarly, “I will not lend to you until you lend to me” falls under two sales in one sale, and it is not permissible. Even though some scholars have permitted this, I have reservations about it and do not see it as permissible. Yes.
Source
الفوزان -أشرطة- أسئلة وأجوبة من دروس التوحيد - أسئلة وأجوبة - الفوزان - ٥ — archive.org (47:30)
The Arabic text is a machine transcription of the audio recording.