The Ruling on What Is Called the Employees' Association

Question:
May Allah reward you with good. Another question says: Shaykh, what is the ruling on joining what they call associations, specifically the employees' association? Each person contributes a certain amount, and one of them takes it every month according to the lottery. Is this permissible?

Answer:
I have been issuing this ruling for a long time, and I still hold that this is not permissible because it is riba (usury or interest). A loan that brings benefit is riba, and every loan that brings benefit is riba. One does not lend to them except on the condition that they lend to him. This is not considered as two sales in one sale, but rather as a loan that brings benefit. It brings a payment to himself by taking these pooled amounts after he has paid a small installment. He takes these pooled amounts when his turn comes. And Allah the Exalted has made the matter easy for him; he can borrow from one of his brothers, and then, if Allah makes it easy for him, he repays his loan without resorting to this process. Yes.