A study concerning the Muslim Fund: interest-free loans against pledge and the price of forms

Question

Question: Hazrat Aqdas ﵋! Assalamu ‘alaykum wa rahmatullahi wa barakatuh. Nowadays “Muslim Funds” (community funds that give loans) are being set up everywhere; they have also been included in the programmes of the Jamiat al-Ulama. The Muslim Fund in Deoband was set up under the patronage of the respected Hazrat Mawlana As‘ad, and in Lucknow and Rae Bareli under the patronage of the respected Hazrat Mawlana Ali Miyan, and the same is happening everywhere.

Answer

Just as the prohibition of riba is established by text (mansus), the permissibility of sale as such is also established by text: [ar]أَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟[/ar] “Allah has permitted trade and forbidden riba” (the verse; Surah al-Baqara, 2:275).

Source: Fatawa Mahmudiyya

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