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Let's initiate Non-riba loan website funded by charity

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  • Let's initiate Non-riba loan website funded by charity

    How about we build a website let's call it halalloans.com
    Then people give charity to this website.
    Then people can just borrow and return money from this website.
    The important thing is that it is non-profit and there's no riba.
    I hope it can become super popular since it combines a lot of important things together, like charity and halal non-riba loans.
    Also, we should be strict about allowing people to borrow money only for halal things.
    And be kind to them too yay!

    Special note: It may not seem sensible but let's just try this.
    Also, it may seem silly to have a charity for loans when people in Syria or Palestine may be more needy of our cash.
    But let's just try this yay! A world without riba how's that? Besides, it's charity.

    Original Post.


    While I recommend all the tiny details to economic specialists to figure out, here are some basic suggestions:
    We can let people 'save' their money in our fund, without earning interest. Then we invest their money (just like real banks!). We also loan out their money and if things go terribly wrong we just have to use our own money and intend it as charity or something like that. Also we could get legal help to get back the loaned money if noone pays back (and if we need to pay the people who loaned us the money in the first place) so we end up like agents.

    Two fund sources:
    1. Charity
    2. Receiving Voluntary non-riba loans

    Two fund outlers:
    1. Halal investments for profit
    2. Giving non-riba loans

    A main thing is that: since we're not some mega bank, so we don't have so much power, so we just loan out tiny amounts of money like $50 instead of $500,000.

    Halal housing 'loan'/partnership

    Note: We might end up just collaborating with halal banks and using their economic principles in a slightly different way, by adding an element of charity etc..

    Since we won't give away interest to people who loan their money to us insha-Allah, it's like a profit boost for us.

    It would make sense if one of two things happen:
    1. We actually start a full-time non-riba bank business
    or
    2. We just suggest halal banks to make their efforts available online to non-Saudis. There's already lots of effort in this, but I just want a more immediate thing to help people out insha-Allah.
    I'd love to make 'halal payday loans'.

    In the West, payday loans are famous high interest rate loans (but the loaned money is in small amounts which cause a great deal of grief due to the large increase in debt. It would be phenomenal insha-Allah to have halal payday loans, absolutely zero interest.
    Last edited by sci; 29-12-12, 05:08 AM.

  • #2
    Re: Let's initiate Non-riba loan website funded by charity

    sounds like a great idea on paper. wonder if this could actually work.....
    And never think that Allah is unaware of what the wrongdoers do. He only delays them for a Day when eyes will stare [in horror]. [Quran, 14:42]

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    • #3
      Re: Let's initiate Non-riba loan website funded by charity

      It sounds like a great idea, my main concern would be finding reliable people to run it and how they would be paid. And of course, the funding. It might be kind of hard to compete for charitable donations when other options like giving to schools, masjids, and needy people overseas seem more urgent and beneficial.
      Blessed is He in Whose Hand is the Dominion, and He is Able to do all things. (67.1)

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      • #4
        Re: Let's initiate Non-riba loan website funded by charity

        h a l a l
        Last edited by sci; 29-12-12, 04:58 AM.

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        • #5
          Re: Let's initiate Non-riba loan website funded by charity

          Instead of calling it halalloans.com, we could call it zerointerest.com
          This way we attract non-Muslims to take part in it.
          I think it would be a massive hit because people are suffering from the interest in loans
          I would definitely allow other people to copy the websites idea and make bigger better versions
          A key point is that usually financial institutions are for-profit, they use the profit to pay the people, this institution would be non-profit, we could have a separate donation line like this

          Donation 1: Donate to add funds. Funds are lent out and taken back at zero interest!
          Donation 2: Donate to support management of the site.
          As for keeping the money, its quite complicated because in IslamQA it seems that we can't store money in a bank which uses the money in loans http://islamqa.info/en/ref/138374
          Though if we don't have any choice we probably can just store it in a checking account (we don't get interest). I really don't know the rulings on this, but I think its a wonderful idea since some people not interested in stealing money but need the money and don't want nasty RIBA

          "Giving loans is a type of kindness and charity, and it is not permissible to stipulate that favours be done for the lender or to agree that he will get some benefit. The scholars are unanimously agreed that every loan which brings a benefit is riba. " http://islamqa.info/en/ref/148458

          In that case all those 'Islamic loans' with all those complicated things are riba right? Since in all those 'partnerships' and stuff somehow in the end its just a loan which the bank benefits from anyway.\\


          I propose just asking/ working together with some kind Muslim business to help with storing the money etc. It also makes sense to make many people hold a small amount of the money instead of entrusting one person to hold a big chunk so the risk of losing is less.

          Jazakallah khair!
          Last edited by muslims9001; 06-01-13, 05:30 AM.

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          • #6
            Re: Let's initiate Non-riba loan website funded by charity

            might be a good idea to start off doing micro loans, and then perhaps if someone needed a lot of money they could take many micro loans from several people so that no one took too big of a risk. That way all the risk would still be on the lender, not the fund.
            Blessed is He in Whose Hand is the Dominion, and He is Able to do all things. (67.1)

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