FatwaJohorTransactions & Finance
MEMOHON MELAKSANAKAN AKTIVITI PINJAMAN SYARIAH KOPERASI PEGAWAI KERAJAAN DAERAH JOHOR BAHRU BERHAD
What is the ruling on profit from riba-based transactions, and how should a cooperative applying for Shariah-compliant lending handle such money?
Short answer
Profit obtained from business or financial transactions involving riba is forbidden under Islamic law.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Johor State Mufti Department
- Date
- Status
- Fatwa committee decision
- Series
- Fatwa Negeri Johor
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
Profit obtained from business or financial transactions involving riba is forbidden under Islamic law. The riba money is to be channelled to the baitulmal for use in public interest. The fatwa text also states that the money may be used for activities, including Shariah-compliant financing products.
Written in our own words from the original fatwa — check the source before acting on it.
Keuntungan yang diperolehi daripada perniagaan atau transaksi kewangan yang berunsurkan riba adalah haram menurut hukum syarak.
Read the full fatwa on the Johor website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Johor State Mufti Department. “MEMOHON MELAKSANAKAN AKTIVITI PINJAMAN SYARIAH KOPERASI PEGAWAI KERAJAAN DAERAH JOHOR BAHRU BERHAD”, 16 May 2012. https://said.johor.gov.my/perkhidmatan/paparan_detail_fatwa.php?id=513. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-riba-profit-cooperative-shariah-lending/