Dr. Monzer Kahf, a prominent economist and counselor states: Fixed profit means there is no loss under any circumstances. This is pure RIBA on two grounds: 1) any contract, regardless of its name or title, that guarantees principal and gives a return above it is “A LOAN FOR INCREMENT’ This is exactly the definition of RIBA as mentioned in the Qur’an (2:275) that makes the distinction by using the word “you get back your principal” [Falakum Ru’usu Amwalikum]; and 2) the source of the increment (the name you give it is immaterial) given to you is the transactions of the bank, these transactions are essentially also lending on increment, i.e., Riba transactions. One must check with one’s heart, in the light of the texts of the Qur’an, Hadith and Fiqh literature, regardless of whoever says what!”
Putting money in a bank and taking fixed profit
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