Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Assalm o Alaikum

I am working in a private Company, and my company deducts 10% from my salary

very month

as PROVIDENT FUND, and total of this amount of whole employee is invested in Banks to get Interest.

Every year this interest is distributed in the employee according to their share, and when the

employee resigns from company,he gets back the amount with interest which was deucted from his salary every month.

Kindly tell me, is this interest is HALAL or if not then can I give this Interest to my POOR relatives

living in INIDA.

Thanks

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

RIBA INTEREST PROVIDENT FUND

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Your Question: Kindly tell me, is this interest is HALAL

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Allah Says in the Holy Quran Chapter 3 Surah Ale-Imraan verses 130-132:

130 O ye who believe! Devour not ‘riba’ doubled and multiplied; but fear Allah; that ye may (really) prosper.

131 Fear the Fire which is prepared for those who reject faith.

132 And obey Allah and the Messenger; that ye may obtain mercy.

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

Dear and beloved brother in Islam, Allah and His Messenger (saws) have declared every aspect and every manifestation of the abomination of ‘riba’ as absolutely forbidden for the believers who sincerely fear Allah and the Last Day; thus let no one convince you otherwise!!!

Although some ignorant people have tried to translate ‘riba’ as ‘usury’ or excessive interest, we assure you in the Blessed Name of Allah Subhanah brother, every single aspect or manifestation of the evil of ‘riba’….be it interest or usury, etc…..every single manifestation of the abomination of ‘riba’ is categorically forbidden for the believers, and a grave sin in the Sight of Allah Subhanah.

Your Question (again): Kindly tell me, is this interest is HALAL

Beloved brother in Islam, every single manifestation of the evil of ‘riba’ (interest and usury) is absolutely and categorically forbidden for the believers.

In your particular case brother, you would only be entitled to receive and consume your principal or the 10% which was deducted from your salary every month.

If there are other believers working in your organization, or if you have access to the ears of the owners of the company, etc….you could try to convince them to invest your contributions in an Islamic Bank or in any of the Shariah-compliant investment schemes available, which would then entitle you to accept the lawful returns which are generated.

Your Question: Kindly tell me, is this interest is HALAL or if not then can I give this Interest to my POOR relatives living in INIDA.

My beloved brother in Islam, first and foremost one who believes in Allah and the Last Day, must strive to the best of his capacity that not only does he accept or consume even a cent of ‘riba’, but his lawfully earned wealth is not used to generate or facilitate the concept of ‘riba’.

It is not as if it is deemed permissible in Islam for one to continue taking interest as long as he spends it on charity; for Allah does not accept anything in His Cause unless and until it is pure and lawful.

Sahih Muslim Hadith 2214 Narrated by Abu Hurayrah

Allah's Messenger (saws) said: ‘O people, Allah is Good and He, therefore, accepts only that which is good!’

Now the question arises what should one do with the interest money one has already accumulated in the past in ignorance of the Laws of Allah?

For the unlawful ‘interest’ money that one has accumulated in one’s past in ignorance of Allah’s Laws, the person has two choices:

1. One may leave it in the bank.
2. Or, one may take it and dispose it.

Some scholars are of the opinion that it does not help the cause of the believers to leave the interest in conventional banks for at best it helps them to generate more interest, and at worst, they may dispose it to an institution which might work against the Cause. In cases where one has already accumulated interest money in ignorance of Islamic Law, and Allah Subhanah has guided them, and they now wish to dispose off that illegal money, the scholars are of the opinion that one may take this interest with the intention that he wants to rid himself of this evil thing, and give it away to some charity without seeking any reward from Allah Subhanah for this spending. His only intention should be to get rid of this unwanted and illegal money, and thus purify himself from the evil of ‘riba’. The believer who does this only because he fears the accounting of Allah on an Inevitable Day, will, if Allah Wills, be rewarded for striving to keep himself pure from the evils of ‘riba’.

The spending of illegally and unlawfully earned wealth does not have any worth in the Sight of Allah; for Allah is Good and Pure, and He accepts only what is good and pure.

The issue with the illegally and unlawfully accumulated money is not how best to spend it, but how soon can one rid himself of this illegal and unlawful wealth. His only intention in giving this money away should be to purify oneself and get rid of the evil that is with him. This illegal and unlawful money earned from interest can be compared to a burning coal in one’s hand! When one unintentionally and accidentally holds a burning coal, his only intention is to get rid of the burning coal from his hand; not where best to place it so that it can be of some benefit!

Your Question: ….can I give this Interest to my POOR relatives living in INIDA.

The Messenger of Allah (saws) said: "Charity for the poor is rewarded as one good deed; but in the case of a relative it is considered as two: [one reward for helping] blood ties, and [the other reward for] the charity [itself]."

Related by Ahmad, an-Nasa'i, and at-Tirmidhi.

Beloved brother in Islam, if indeed you wish to spend on your poor relatives, it would be best if you could spend upon them from your lawfully earned wealth as ‘zakah’ or ‘sadaqah’…..and avail yourself of the double rewards as promised by Allah and His Messenger (saws).

If one trusts, obeys, and follows the guidance and commands of Allah and His Messenger (saws), one can be assured of never ever being misled; but if one believes, obeys and follows any other guidance, other than that of Allah and His Messenger (saws), one can be assured of being led astray.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan