Would it be lawful under Islamic law to differentiate between business loans on which interest may be charged and consumption loans which should be free of interest? Print
Economics - General

Q: Would it be lawful under Islamic law to differentiate between business loans on which interest may be charged and consumption loans which should be free of interest?

A: The business activity will be financed through legitimate means, like Mudarbah and Musharkah and also some of the other instruments outlined in the answer to question. The consumption loan will be available as Qarz-e-Hasana through Islamic banking system.

Contemporary fatawaa