This is tantamount to usury and interest. An investment and partnership according to the Shariah is where there is an element of profit and loss sharing and the percentage of profit is based on the actual profit made not on a percentage return on capital invested or a fixed predetermined amount. Alternatively, if the person requiring the funds, requires it to purchase an asset, or trading stock, the value of which is R50,000.00 then the financier may purchase the asset for R50,000.00 and after taking posession of the same, sell it to the owner of the business for R65,000.00 payable in a certain period of time that is agreed upon.
And Allah Ta'ala Knows Best
Shafiq Jakhura (Mufti) M.D. Mangera (Mufti)
Fatwa Dept. Fatwa Dept.