In an open door, look. The questioner: And he says it is riba.
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The questioner: Regarding the prohibition of the associations that neighbors and friends do, meaning that three or five individuals gather and agree among themselves to have one hundred dinars each month, which they receive every five months or according to what may be the case, and he speaks of its prohibition.
The Shaykh: In an open door, look.
The questioner: And he says it is riba.
The Shaykh: Close the door.
The questioner: Without evidence, so what is the truth in this matter?
The Shaykh: It is, as some scholars have said, that it may be riba. So if they want to get out of the riba and make it a charitable cooperative association, they must agree on the following.
The student: The door behind, just the door, O Shaykh, for the sake of Allah.
The Shaykh : And he is, yes.
The student: The glass behind.
The Shaykh: The crystal.
The student: The crystal, the crystal.
Another student: Peace be upon you, O Shaykh.
The Shaykh: And upon you be peace. So the solution is that they agree that this cooperative is voluntary.
The questioner: Yes.
The Shaykh: And not a repayment, otherwise it would be riba, the form of riba.
The questioner: Yes.
The Shaykh: One of the partners, whether they are five or ten or fewer or more, pays, for example, the monthly amount, and let us assume it is ten dinars.
The questioner: Yes.
The Shaykh: At the end of the month, one of them takes one hundred dinars.
The questioner: Yes.
The Shaykh: In exchange for the ten he paid. Then, for one reason or another, and let us assume good intention, the one who received the one hundred dinars leaves; he travels, he gets sick, he dies, so he took one hundred in exchange for ten.
The questioner: Ten, yes.
The Shaykh: This is undoubtedly riba. So if the agreement is only on what we know, that each one at the end of the month takes one hundred, then the operation is a riba-based operation.
The questioner: Yes.
The Shaykh: But if they are lenient, meaning that one of them, for example, gets sick or withdraws from the partnership or something similar, then what he took is lawful. By this, they escape from riba.
The questioner : Yes, may Allah reward you with good.
The Shaykh : And beware of that.
The questioner: Will it not be like a loan, O Shaykh?
The Shaykh: Where is the loan?
The questioner: That he borrowed ninety dinars from the other two.
The Shaykh: No, it will not be a loan.
The questioner: And it is obligatory...
The Shaykh: The names, whether you call it a loan or call it riba, the result is the same. So the solution to this loan that brought riba, or better, do not say a loan that brought riba, the end is riba. Ah, so the solution to this end is what I mentioned earlier, otherwise this partnership is forbidden.
The Shaykh: In an open door, look.
The questioner: And he says it is riba.
The Shaykh: Close the door.
The questioner: Without evidence, so what is the truth in this matter?
The Shaykh: It is, as some scholars have said, that it may be riba. So if they want to get out of the riba and make it a charitable cooperative association, they must agree on the following.
The student: The door behind, just the door, O Shaykh, for the sake of Allah.
The Shaykh : And he is, yes.
The student: The glass behind.
The Shaykh: The crystal.
The student: The crystal, the crystal.
Another student: Peace be upon you, O Shaykh.
The Shaykh: And upon you be peace. So the solution is that they agree that this cooperative is voluntary.
The questioner: Yes.
The Shaykh: And not a repayment, otherwise it would be riba, the form of riba.
The questioner: Yes.
The Shaykh: One of the partners, whether they are five or ten or fewer or more, pays, for example, the monthly amount, and let us assume it is ten dinars.
The questioner: Yes.
The Shaykh: At the end of the month, one of them takes one hundred dinars.
The questioner: Yes.
The Shaykh: In exchange for the ten he paid. Then, for one reason or another, and let us assume good intention, the one who received the one hundred dinars leaves; he travels, he gets sick, he dies, so he took one hundred in exchange for ten.
The questioner: Ten, yes.
The Shaykh: This is undoubtedly riba. So if the agreement is only on what we know, that each one at the end of the month takes one hundred, then the operation is a riba-based operation.
The questioner: Yes.
The Shaykh: But if they are lenient, meaning that one of them, for example, gets sick or withdraws from the partnership or something similar, then what he took is lawful. By this, they escape from riba.
The questioner : Yes, may Allah reward you with good.
The Shaykh : And beware of that.
The questioner: Will it not be like a loan, O Shaykh?
The Shaykh: Where is the loan?
The questioner: That he borrowed ninety dinars from the other two.
The Shaykh: No, it will not be a loan.
The questioner: And it is obligatory...
The Shaykh: The names, whether you call it a loan or call it riba, the result is the same. So the solution to this loan that brought riba, or better, do not say a loan that brought riba, the end is riba. Ah, so the solution to this end is what I mentioned earlier, otherwise this partnership is forbidden.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.