Investment

30 Dec 2020 Ref-No#: 2550

If you invest in a company and that company pays 8 to 12% of the amount invested according to the profit gained by company, is it interest? Please guide.

Answer

Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,

That is too little information to pass a ruling on the investment. In order to advise, please send the entire contract, or full details about the investment. What happens if the profits are less than 8% or more than 15 % of the capital? What happens if there are no profits? What exactly is done with the funds once invested? The ruling will be based on those factors.