Working For A Financial Institution
QUESTION:
I work in a claims and disability assessment position, where I assess severe illness and disability, for Old Mutual. Someone brought it to my attention that Old Mutual works with interest. Is it permissible to work for this type of institution?
ANSWER:
Based on our research, Old Mutual is a financial institution that deals in Riba (interest). Just as most banks around the world, they deal in interest and their incomes are based on interest. It is important to note that interest is Haram. There are many evidences for this, some of which are as follows:
وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا
“And Allah has made trade Halagal and made interest Haraam.”
Surah al-Baqarah 275
يَمْحَقُ ٱللَّهُ ٱلرِّبَوٰا وَيُرْبِى ٱلصَّدَقَـٰتِ وَٱللَّهُ لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ
“Allah destroys interest and gives increase for charities. And Allah does not like every sinning believer.”
Surah al-Baqarah 276
يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا ٱتَّقُوا ٱللَّهَ وَذَرُوا مَا بَقِىَ مِنَ ٱلرِّبَوٰٓا إِن كُنتُم مُّؤْمِنِينَ
فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ ٱللَّهِ وَرَسُولِهِۦ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَٰلِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ
“O you who believe, fear Allah, and give up what remains of interest, if you are true believers. And if you do not, then beware of a war with Allah and His Messenger. But, if you repent, you may retain your principal (amount of wealth), you do no wrong, nor are you wronged.”
Surah al-Baqarah 278 – 279
In this verse, Allah Ta’ala wages war against those Muslims who involved themselves in Riba (interest).
يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا لَا تَأْكُلُوا ٱلرِّبَوٰٓا أَضْعَـٰفًا مُّضَـٰعَفَةً ۖ وَٱتَّقُوا ٱللَّهَ لَعَلَّكُمْ تُفْلِحُونَ
“O you who believe, do not consume interest, doubled and multiplied, but fear Allah that you may be successful.”
Surah Al-Imran 130
حَدَّثَنَا قُتَيْبَةُ، حَدَّثَنَا أَبُو عَوَانَةَ، عَنْ سِمَاكِ بْنِ حَرْبٍ، عَنْ عَبْدِ الرَّحْمَنِ بْنِ عَبْدِ اللَّهِ بْنِ مَسْعُودٍ، عَنِ ابْنِ مَسْعُودٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَيْهِ وَكَاتِبَهُ.
”The Messenger of Allah Sallallahu Alaihi Wasallam cursed the one who consumed Riba, and the one who charged it, those who witnessed it, and the one who recorded it.”
Tirmidhi 1206
From this Hadith, the Messenger of Allah Sallallahu Alaihi Wasallam curses all of those who are involved in Riba, whether it be the one who is paying interest, the one who is charging interest, the one who witnesses an interest transaction, or the one who writes/records an interest transaction.
Therefore, from the above-mentioned evidences, Muslims must abstain from all aspects of interest. As such, it will not be allowed for a Muslim to work at Old Mutual or any similar financial institutions.
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Mufti Muhammad Isa Ali
Date: 08 Rabi-ul-Awwal 1447 / 01 September 2025
CHECKED AND APPROVED BY:
Mufti Yacoob Vally Saheb