The ruling on a merchant fixing a monthly amount as profit
Machine translationRead the Arabic original
Question:
Honorable Shaykh, may Allah grant you success. He says: An elderly woman gave her money to a merchant to trade with it for her, so the merchant fixed for her an amount she would receive every month as profit. Is this fixing permissible?
Answer:
No, this is forbidden. It is not permissible to fix the profit. Rather, the profit goes down and up, or sometimes it is absent and there is no profit. He says: The profit is between us, half, a third, or whatever they agreed upon. Whether it is little or much, or if there is no profit, Allah will compensate for it. But a specific amount is not permissible. This is a lease; this means leasing the amount. Yes.
Honorable Shaykh, may Allah grant you success. He says: An elderly woman gave her money to a merchant to trade with it for her, so the merchant fixed for her an amount she would receive every month as profit. Is this fixing permissible?
Answer:
No, this is forbidden. It is not permissible to fix the profit. Rather, the profit goes down and up, or sometimes it is absent and there is no profit. He says: The profit is between us, half, a third, or whatever they agreed upon. Whether it is little or much, or if there is no profit, Allah will compensate for it. But a specific amount is not permissible. This is a lease; this means leasing the amount. Yes.
Source
شرح كتاب المنتقى من أخبار المصطفى صلى الله عليه وسلم، بداية من باب حكم من لم يحسن فرض القراءة — islamhouse.com (1:06:29)
The Arabic text is a machine transcription of the audio recording.