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  1. #1
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    Are prize bonds halal?

    Assalam.o.Alaikum,

    I just wanted to know whether prize bonds are halal or not.

    What is a prize bond?
    A prize bond is a piece of paper having a particular value of money. One can invest by buying a prize bond and then getting a prize depending on your luck after some period of time. The prize is determined by a lucky draw. For e.g: A person buys a prize bond worth Rs. 1500. After sometime, there will be a lucky draw and depending on your luck, you can win the first prize, second prize, third prize or nothing.

    I have read in many articles that the govt. accumulates the interest payable on each person's prize bond, consitutes it in a join pool and then gives the money to the person who wins it through a lucky draw.
    Just wanted to know whether checking it whether a person has won or not is also wrong or not as in my case, my father asks me to check the prize bond for him. Is it also a sin for me to check the bonds, whether my father has won or not through the internet/computer.
    My father says that the "Islamic Republic of Pakistan"(the country in which i live) has issued the prize bonds so the sin will go to them.Although i myself know that we ourselves have to refrain from what is wrong even if the govt. does something unlawful. I want to benefit myself from your opinion!
    Not to forget that our investment is safe in this case and i have read that when your investment is safe, is it not considered as gambling.. Am i speaking correct?

    Any help would be highly appreciated. Please help me in my case ASAP.

    Thank you,

    Allah hafiz.

  2. #2
    On ne passe pas' mgilani's Avatar
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    Re: Are prize bonds halal?

    A prize bond in which the original investment remains and one is able to redeem the bond for cash is also unlawful in Shariah.

    The reason for this is that, in prize bonds interest is added (according to the ratio of investment) to each personís original investment and gathered in a joint pool. Then, instead of returning each person their interest, it is all given to the individual who won the prize. Therefore, this prize is pure interest and unlawful.

    Due to the original investment being safe, it does not fall within the definition of chancing and gambling which is also unlawful. However, scholars mention that it resembles chancing in that the interest accumulated on the original investment is uncertain. One may receive this interest and more (in the case of winning a prize) or not receive any interest altogether.

    In light of the above, any prize received by purchasing these bonds is regarded as Riba, thus unlawful, and included in the Hadith:

    ďAny lending arrangement which results in some benefits to the lender, is one of the kinds of RibaĒ (Sunan al-Bayhaqi).

    It should be remarked here that the purchaser of theses bonds in reality and according to the principles of Islamic Fiqh is considered to be a lender and not merely a purchaser.

    Those that do not receive any prize on the bonds are also sinful due to the fact that they purchased theses bonds with the intention of gaining a prize (interest) which is also unlawful.

    In conclusion, purchasing prize bonds in reality is lending money to the issuers of these bonds. Any prize received will be considered Riba, thus unlawful. It will also be impermissible to invest in these bonds with the intention of receiving a prize.

    And Allah knows best

    Muhammad ibn Adam Darul Iftaa, Leicester, UK
    www.daruliftaa.co.uk

    An Armed man is a citizen, and Unarmed man is a Subject.
    Anthony Soprano.

  3. #3
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    Re: Are prize bonds halal?

    I know thats its Riba i.e haram.. But i wanted to know whether checking it for my father is also sin for me coz my father asks me to check them on his behalf..

  4. #4
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    Re: Are prize bonds halal?

    Assalamualeikum
    stick the money that you would spend on these prize bonds into the mosque fund, guaranteed to win in the eyes of Allaah swt.
    you cant get that kind of return from any bank account or national lottery thingy

  5. #5
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    Re: Are prize bonds halal?

    Quote Originally Posted by abuabdullaah173 View Post
    Assalamualeikum
    stick the money that you would spend on these prize bonds into the mosque fund, guaranteed to win in the eyes of Allaah swt.
    you cant get that kind of return from any bank account or national lottery thingy
    Walaikumassalam,
    Indeed, Spending in the mosque fund is truly a very very praiseworthy act..
    Its totally true that one cannot get that reward which is spent in the mosque fund from any other source. It is Allah who will reward you for it.This spending will actually help us in the hereafter aswell.
    The life of this world is just a temporary life. One doesnt even know whether he will live the next second or not..
    Not even a single person will take any of his money with him in grave so, Why should we earn money through unlawful means?? and ultimately burn in hell fire..

  6. #6
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    Re: Are prize bonds halal?

    The first one is in Surah Al-baqarah verse no.275

    "Those who devour usury will not stand except as stands one whom the Satan by his touch has driven to madness. That is because they say, "trade is like usury", but Allah has permitted trade and has forbidden usury",

    In the next verse verse 276 in the same place He says,

    "Allah will deprive usury of all blessing, and will give increase for deeds of charity, for he does not love any ungrateful sinner."

    Two verses later in verse 278 He says,

    "Oh you who believe! Fear Allah and give up what remains of your demand for usury if you are indeed believers."

    In verse 279 He says,

    "If you do not, take notice of war from Allah and his Messenger sallallahu alaihe wasallm but if you repent you shall have your capital sum. Deal not unjustly and you shall not be dealt with unjustly."

    In the second place in Surah Aal-Imran, verse no.130 Allah says,

    "Oh you who believe! Devour not usury doubled and multiplied; but fear Allah that you may prosper."

    In the third place in Surah Al-Nisaa’ Allah states in verse 161,

    "That they took usury though they were forbidden and they devoured peoples wealth wrongfully; we have prepared for those amongst them who reject faith a grievous chastisement."

    In the fourth place, Surah Al-Room, verse no.39 Allah mentions

    "That which you give in usury for increase through the property of people will have no increase with Allah: but that which you give for charity seeking the countenance of Allah, it is these who will get a recompense multiplied."

    Source: http://www.inter-islam.org/Prohibiti...st.htm#Illegal


    Other than that, I can bet many many muslims on this universe who earn money through lawful means and are mashAllah much better than us in their financial position aswell as in their deeds!
    Last edited by Zeeshan1; 06-02-09 at 05:53 AM.


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