Ruling on associations established among employees
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Your Eminence! The Messenger of Allah (peace and blessings be upon him) said: (Every debt or loan that brings benefit is riba) or as he (peace and blessings be upon him) said. Does this apply to the associations that some people form, where they set aside a portion of their salaries and one of them takes it each month?
First, the hadith you referred to is a weak hadith attributed to the Prophet (peace and blessings be upon him), but it is well-known among the scholars of knowledge -Meaning: It is well-known among them: (That every loan that brings benefit is riba) -And its aspect is: The intended meaning of a loan is doing good and spending in charity. If the lender benefits from it, it departs from its intended purpose and becomes intended for exchange,If you say: I lend you a thousand riyals on the condition that you return to me a thousand and two hundred; this is not lending.
As for the associations that some people practice, where they agree to set aside a specific amount from their salaries to be given to one of them, and in the second month to the second, and in the third month to the third, and so on, this is permissible and is not of the category of a loan that brings benefit; because the lender does not receive more than what he lent. He gives a thousand and will only receive a thousand.
First, the hadith you referred to is a weak hadith attributed to the Prophet (peace and blessings be upon him), but it is well-known among the scholars of knowledge -Meaning: It is well-known among them: (That every loan that brings benefit is riba) -And its aspect is: The intended meaning of a loan is doing good and spending in charity. If the lender benefits from it, it departs from its intended purpose and becomes intended for exchange,If you say: I lend you a thousand riyals on the condition that you return to me a thousand and two hundred; this is not lending.
As for the associations that some people practice, where they agree to set aside a specific amount from their salaries to be given to one of them, and in the second month to the second, and in the third month to the third, and so on, this is permissible and is not of the category of a loan that brings benefit; because the lender does not receive more than what he lent. He gives a thousand and will only receive a thousand.