Can you invest in halal businesses with borrowed money from the bank?

Can you invest with riba based money?

So I think firstly one should never borrow riba based money. If it’s not allowed for fulfilling necessities then it’s far worse to do it to make money

But even putting that aside, I believe all gains made from Haram money is still Haram money therefore this wouldn’t be allowed

It’s partly why one needs to purify the dividend earns from stocks so that Haram money doesn’t compound

The following verse can be referred to to show the practice of riba could be harmful and disliked. O believers! Fear Allah, and give up outstanding interest if you are ˹true˺ believers. If you do not, then beware of a war with Allah and His Messenger! But if you repent, you may retain your principal—neither inflicting nor suffering harm. If it is difficult for someone to repay a debt, postpone it until a time of ease. And if you waive it as an act of charity, it will be better for you, if only you knew. (2:278-80)

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It’s pointless, because by investing with haram money any profit gained is haram aswell.

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Majority of scholars say you can’t even hold on to this kind of money. Have to dispose it to cleanse your wealth

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Agreed, I would add on, that there is never barakah in money that is haram. Even if you make millions, it will go from you verryyy quickly. You won’t be able to enjoy it as much

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The question assumes all loans in banks are interest based.

Some banks offer no interest based loans, for instance, I’m not entirely sure if Santander still does this, but they had selected customers to have interest free loans.

This was my next point, what if the bank loans you money and you have a specific time period to pay it back, interest free? Then would that be ookay?

interest money generates inequality in deals. “O believers, take not doubled and redoubled interest, and fear God so that you may prosper”. Quran (13-132) this goes onto illustrating that there is no barakah in the halal business you wish to invest in.

We have to remember, some banks like Loyds have shariah compliant loans too, but I don’t know if they are still continuing all this.

Besides banks, there are quite a few businesses that will offer a loan for your business in return of some shares in your business, if they think it is a good idea. So there are alternatives.

Jazakum allahu khairan, my point is the same here, any money involved in riba in which YOU are directly involved in… will not be benefitting you in the slightest. You will have to answer on the day of judgement for it. Allah save us!

I don’t think they do it anymore, for new customers anyway. I remember opening a Islamic Current account with them many years ago just for their no interest purpose

It depends on what kind of shares they’re expecting for these loans. If they expect preferred shares, then it’s not permissible

Lloyds?? No way I haven’t come across those. How does their loan work?

So it seems that we’re in agreement that this isn’t allowed right

I think an interesting discussion would be what if someone inherited an investment that was Haram. Would it still be Haram for them?

Depends on how you gain the money not the origin. For example, If person A has a restaurant and sells food to person B who is a drug dealer, the money gained from that transaction is halal because of the means by which it was acquired. This is because money is not intrinsically haram. What makes it haram or halal is the way in which it was acquired. Thus, inheritance is a halal means of acquiring money irrespective of how the deceased earned their money

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