Answered by Shaykh Muhammad ibn Adam al-Kawthari
The way a business franchise is obtained in Canada is that the prospect franchisee provides some specific amount as down- payment and rest is financed through a bank. The total amount varies from $200,000 to $400,000 depending upon the type of business and franchise one wishes to own.
I also intend to own any of such franchise so that I start earning some money as I don't want to remain a burden on my parents anymore. I have extensively searched in Canada and there is no Islamic business banks which provide interest-free loans. In addition, I don't know any wealthy individual who would provide me loan for a business.
My uncle has agreed to lend me the down-payment required by the franchises. Once I start my business, I will pay him back the money borrowed. His financial situation is NOT such that he could give me a loan for the whole franchise.
My Question is that is it permissible in such circumstances to get financing from a bank? If not, how do you expect Muslims living in Canada to do a business? Since there is no other source of financing, Muslims like me will always remain 2nd class citizens and will not be able to have any effect on Muslim Umma
In the name of Allah, Most Compassionate, Most Merciful,
Interest based dealings have been clearly prohibited in Shariah. The Qur'an and Hadith are quite clear on this. Therefore, receiving any interest based financing from the bank will be unlawful.
As far as your business is concerned, if you can fined another person/persons like your uncle to give you a interest-free loan, then that would be ideal. If you can't, then you will have to make do with something that is smaller.
Remember the words of Shaykh al-Bouti of Damascus, Syria:
“The necessity which allows usurious loans is the same necessity which allows eating the meat of a dead animal, pig and the like, in which case the one necessitated is exposed to perish from hunger, nakedness or losing lodging. Such is the necessity, which makes prohibitions lawful”.
One should always remember that to forego religious injunctions in order to accumulate worldly possessions is too higher of a price to pay. One must always adhere to the laws of Islam, even if that means facing hardships in this world. This world is temporary, and the hereafter is eternal. One’s main objective should be the pleasures of the hereafter and not this world.
As far as “having an effect on the Ummah” is concerned, if the service to Islam and Muslims is done with adherence to the laws of Shariah, then one will be rewarded. However, service to Islam and the Ummah through unlawful means is neither effective nor acceptable by Allah Almighty.
And Allah knows best
Muhammad ibn Adam al-Kawthari, UK
MMVIII © Qibla.
All rights reserved
No part of this article may be reproduced, displayed, modified, or distributed without the express prior written permission of the copyright holder. For permission, please submit a request at our Helpdesk.
The Messenger of Allah, peace and blessings be upon him, said, "Knowledge is only through study." While some knowledge can be gained from reading or casually listening to lectures, the best means to gain knowledge is through finding a qualified teacher and then setting up a systematic program of learning. Picking up a book or reading an article and trying to figure things out on our own is no substitute for learning from someone who has a direct link to our living tradition.
Through joining an online class at Qibla, you can benefit from convenient, online courses that will give you access to reliable scholars and our popular curriculum learning tracks. Knowledge gained in these courses will both build your iman and assist you in putting into practice what you learn. Don't give yourself less than you deserve, register today.
