Working for company established with interest-based loan

22-8-2017 | IslamWeb

Question:

Assalaamu alaykum. I have two specific questions based on interest. Firstly, I would like to know; if a company takes an interest-based loan to sustain or even build itself and hires employees, which is the case for most companies these days, is it impermissible to work for these companies? For example, working in the engineering, logistics and other service departments but not the finance department, where one might have to deal with interest-based transactions. What is the ruling in this matter? Secondly, working for a company that manufactures cars/planes/machines. Let us say in the case of a company that manufactures cars; 90% of the cars are sold with an interest-based loan in countries across the world. Is it permissble to work in the engineering or manufacturing department, or what is similar to that, of a car company then?

---

Answer:

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 is His slave and Messenger. 

Working in companies that have lawful activities is permissible, even if the company takes loans with interest, provided that the very work is permissible and far from interest transactions, such as the work of an engineer, an administrator, a craftsman, a security guard, etc.

Also, it is permissible to work in a car manufacturing company and the like, even if it sells these products with an interest-based system, as long as the work itself is far from interest transactions.

For more benefit, please refer to fatwas 86619and 161695.

Allah knows best.