Halal Money
Islamic finance, explained plainly
Educational guidance only. Financial products vary by country and change often — confirm with a qualified scholar and a regulated adviser before acting.
Riba (interest)
The Quran prohibits riba explicitly and severely. Practically this rules out conventional interest-bearing loans and savings interest. Scholars differ on edge cases such as inflation compensation and certain state-mandated systems.
Quran 2:275-279Halal saving
Non-interest current accounts, Islamic savings based on profit-sharing (mudarabah), physical gold and silver, and asset-backed funds are the common permitted routes. Where interest is unavoidable, many scholars advise donating it without reward.
Quran 2:276Islamic mortgages
Diminishing musharakah and ijarah-based home purchase plans are widely accepted. Some scholars accept murabaha structures; others criticise contracts that mimic interest in substance. Read the actual contract, not the marketing.
Scholarly opinion — AAOIFI standardsEthical investing
Screen out alcohol, gambling, conventional finance, adult content, tobacco and weapons; check debt ratios; purify incidental impermissible income by donating that proportion.
Scholarly opinionZakat on investments
Shares held for trading are generally zakatable at market value; long-term holdings are often assessed on the zakatable assets of the company. Views differ — the Zakat Centre lets you choose your basis.
Scholarly opinionBusiness ethics
Full disclosure of defects, no deception in weight or measure, no exploitation of desperation, prompt payment of workers, and written contracts.
Sahih Muslim 1532; Quran 2:282Debt in Islam
Debt is permitted but taken seriously: record it, repay promptly, and give leniency to a struggling debtor. Forgiving debt is described as an act of charity.
Quran 2:280
Ready to work out what you owe this year? Open the Zakat Centre.