Banking/ Interest

Using Riba to offset lawyer’s fees

QUESTION: We purchased a property in a syndicate with a few partners, and the money held by the lawyers as a guarantee, was invested in a money market account and subsequently accrued interest. Can this money be used to offset the lawyer's fee, or does it have to be...

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Debtor paying more than the loan

QUESTION: I had a client who had owed me a certain amount of money and paid me after a long time. Due to the delay, she decided to give me a certain amount extra than what was owed. Upon enquiry, she said that the balance was with interest and “love” as a gesture of...

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FNB investments

QUESTION: Please advise if the Islamic products such as "savings pocket" and "fixed deposit" offered by various banks, are permissible? One specific product offered by FNB is "Islamic Money Maximizer" that many Muslims are investing in, and that I personally know of,...

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Using interest funds to settle debt

QUESTION: If a person is in debt, can another person help to pay those debts with interest money (and without an intention of attaining reward)? ANSWER: Firstly, it is not permissible to intentionally accumulate interest money. However, if interest funds accrued in...

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Receiving a cash gift from the bank

QUESTION: A bank that we have an account with recently held a promotion (link to which is posted below). We were unaware of such a promotion, but fulfilled the requirements to qualify for it, and hence received the specified cash offer. Will this money be permissible...

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Purchasing bank repo vehicles

QUESTION: When a person fails to pay back the loan from a bank, the bank reclaims his assets, for example, a car, and puts it on sale, is it permissible for a Muslim (who had nothing to do with the person who was unable to pay back the loan) to buy that car from the...

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Finding funds in one’s bank account

QUESTION: Money was mistakenly deposited into my bank account. Three months have passed without anyone coming forward to claim the deposit, while I have also tried to trace the depositor, but to no avail. Please advise what should be done with this money? ANSWER: If...

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