The Ruling on Associations Established Among Employees and Others
Machine translationRead the Arabic original
Question:
This questioner says: Is there any riba (usury or interest) in what is called an association, where each member pays a sum that is received by another member once, and so it rotates among everyone in the association?
Answer:
The correct view is that there is nothing wrong with it. A decision has been issued by the Council of Senior Scholars stating that there is no harm in this, provided they agree on a loan among themselves, where each person takes two thousand when his turn comes, or each takes three thousand, or ten thousand. There is nothing wrong with this, whether for men or women, because it is a loan with no increase and no preference, but rather like for like. Yes.
This questioner says: Is there any riba (usury or interest) in what is called an association, where each member pays a sum that is received by another member once, and so it rotates among everyone in the association?
Answer:
The correct view is that there is nothing wrong with it. A decision has been issued by the Council of Senior Scholars stating that there is no harm in this, provided they agree on a loan among themselves, where each person takes two thousand when his turn comes, or each takes three thousand, or ten thousand. There is nothing wrong with this, whether for men or women, because it is a loan with no increase and no preference, but rather like for like. Yes.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.