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Shof1978
Aug 5, 2012, 10:32 AM
Salaam I want to open a business lending money to pupil ?
If I charge a fixed price on the amount is it OK? For example £1000 I charge £100 so return to me is £1100 and doesn't matter if its for 5 days or 100 days etc

Curlyben
Aug 5, 2012, 12:30 PM
Before you even consider the religious angle, there are legal requirements that are far more important.
In the UK you require a Consumer Credit Licence otherwise you are simply an illegal loan shark..

Shof1978
Aug 6, 2012, 07:09 AM
Salaam I want to open a business lending money to pupil ?
If I charge a fixed price on the amount is it OK? For example £1000 I charge £100 so return to me is £1100 and doesn't matter if its for 5 days or 100 days etc
What is on the religious angle?

jenniepepsi
Aug 6, 2012, 11:22 AM
Assalamu Alaikum.

It is Haram to charge Interest.

You can call it a fee, or whatever you want, but there are no exceptions. You cannot expect repayment for more than what was loaned.