*** How to make money off giving loans? ***

[ALIve]

Asalam Alaikum brothers and sisters, '

If someone came to me asking for a loan, what is the halal way to turn a profit on giving the loan? Since I cannot charge interest, am I able to charge a flat rate of 5-10%? How does this work?

Jazakallah khair

 

[Flos]

As far as I know any interest rate is ribba' - super haram.

Maybe investing money in someone's business? Still, don't know if that's ok, too

 

[ALIve]

Yes, so what is the halal way to make a profit in my specific scenario. Someone comes up to me at the masjid asking for a loan to buy a property for example. Their property cost $200k. I can only lend let's say $10k. So how can I make a profit? Do I charge a flat rate? Do I charge 5% of the rent monthly with a flat rate above that? How does this work? Jazakallah khair

 

[Flos]

I think you should ask a scholar that question.

 

[keiv]

I’m not qualified to answer the question either. How would loaning money in an Islamic country work? I’d imagine this would be related to Islamic banking in some kind of way, however that works.