Profit From Business Established by a Riba-Based Loan
Fatwa No: 390862

  • Fatwa Date:29-1-2019 - Jumaadaa Al-Oula 23, 1440
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Asalam alakumI live in non Islamic countryI have taken loan on interestI was having little knowledge that interest is Haram . Now finally I have decided to close that loan and in future I will not take any type of loan on interest. I have repented to Almighty Allah for my sins.Now my question is the loan which I take before 5years for business every month I pay interest to bankEqual to 200 $ USD monthly But principle loan amount was 14000 $ USD I was paying 200 $ extra to bank as interest monthly all total 14000 $ USD principle amount was utlized in businessAnd I was earning profit from that principle amount which was in business equal to 600 $ USDNow the amount of profit which I have earned with principle amount in five years is this Haram or halal means profit 600 $ USD - interest 200$ USD =profit 400 $ USD issue was only interest which bank takes from me 200$ monthly For utlising principle money into businessI have earned profit of 50000 $usd in five years net is this Haram or halal what to do with this money Kindly guide


All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

The prohibition of the loan is related to the person who borrowed it but not to the very money or whatever the money was spent on.

Therefore, your profits earned in your business are not affected by the fact that the project originated from a Riba-based loan. Hence, if the activity of the business investment is lawful, then there is no harm in benefitting from the profits you earned from it.

You should hasten in repaying the loan, especially if hastening the repayment waives the added interest or some of the amount.

You have done well by abandoning dealing in Riba because among the conditions for the validity of repentance is to abandon the sin and be determined not to return to it.

For more benefit, please refer to Fataawa 346615, 198215, 310777 and 384670.

Allah knows best.

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