FNB Islamic Savings and Loan: Shariah Compliant?
Question:
Slmz
Respected Mufti
I have 3 questions:
1. is the profits earned from FNB Islamic savings account Halal?
2, Is FNB Islamic home loan permisible
3. Is buying and selling shares permissible
JZK
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Muhtaram
We apologize for the belated response.
Your questions refer.
- FNB Islamic Savings Account – We understand that the FNB Islamic savings account is based on the concept of Mudarabah/Islamic sweat equity partnership. In other words, the banks depositors and investors deposit their funds in such savings accounts as the Arbab al-Mal/investors and the bank serves as the mudarib/working partner. Now the bank could either engage in a parallel Mudarabah to re-invest the funds into the capital markets or fund the assets such as Murabaha, Ijarah financing clients. The permissibility depends to a large extent on the investment holdings of the bank rather than the terms and conditions only.
- FNB Islamic home loan – We understand that FNB offers a Diminishing Musharakah Islamic home loan concept. The Diminishing Musharakah concept is a complex structure with different permutations and procedural requirements. This concept is termed as the “Diminishing home equity rental concept”. Kindly forward us the underlying agreement for our shariah review.
- Shares – We are of the view of permissibility of buying and selling shares with certain conditions such as ensuring the underlying businesses are shariah compliant and the financial structure of the companies are also compliant. Moreover the brokerage contract with the placement broker should be compliant. The custody and subsequent purchase and sale of the shares should also be shariah compliant. It could be possible that you either sold or purchased a stock that was not the subject of shariah compliant and lawful possession (Qabdh) hence rendering such transaction Fasid (Voidable). Kindly refer to our detailed Fatwa on this.
And Allah Ta’āla Knows Best
(Mufti) Ismail Desai
Chairman of Shariah Board and Fatwa Committee,
Darul Iftaa, Durban, South Africa
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and Allah Ta'ala Knows Best
Mufti Ismail Desai
Darul Iftaa
Durban, South Africa
Disclaimer The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any organizations to which he may be affiliated with. The opinions and educational information proffered in this communication are based on the jurisprudential understanding and available knowledge of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another scholar may reach different juristic inferences and conclusions to those as expressed by the author. Whilst every effort has been taken to ensure total academic integrity and honesty, the author is open to corrective measures based on sound academics and juristic inferences. The Shari’ah ruling given herein is based specifically on the specific scenario in question. The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage. This answer may not be used as evidence in any court of law without prior written consent from the author. Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
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