The Loan Association.
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Question:
Is the association permissible? If not, I hope you will clarify. The Shaykh: What is the association? The questioner: They mean the cooperative association among colleagues and employees. The Shaykh: What is the employees' association? The questioner: Every month they collect money and the other person takes it.
Answer:
Answer: This is lending and borrowing. This loan association is not permissible because it is a loan that has been made to yield a benefit. You lent to them on the condition that they lend to you, and you want from this an increase over what you lent them. You give them a little and take a lot. In my opinion, this is not permissible.
Is the association permissible? If not, I hope you will clarify. The Shaykh: What is the association? The questioner: They mean the cooperative association among colleagues and employees. The Shaykh: What is the employees' association? The questioner: Every month they collect money and the other person takes it.
Answer:
Answer: This is lending and borrowing. This loan association is not permissible because it is a loan that has been made to yield a benefit. You lent to them on the condition that they lend to you, and you want from this an increase over what you lent them. You give them a little and take a lot. In my opinion, this is not permissible.
Source
www.alfawzan.af.org.sa
The Arabic text is copied verbatim from the original source, without any edits.