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Forums Forums Islamic Sharia Digital Committee App. And Interest In Service Fee?

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  • Digital Committee App. And Interest In Service Fee?

    Posted by Noor Fatima on August 3, 2023 at 8:27 am

    Pakistan me Committee ya BaySi dalny ka rivaj hai. Isi service ko digitize kar ke Oraan nami app ne Online Committees ki service shuru ki hai. Jis me collection se le kar pay out tak sab kch Unhi kr zime hota hai. But they charge a fee called service fee for early payouts. For example if 10 people are contributing 10000/- each month. And I am getting the first payout there is monthly service fee of 1500/- . So each month, I’ll pay an installment of 10000/- plus 1500. But my payout will be 100000(one lac). Is this Sood/ interest????

    Umer replied 7 months ago 2 Members · 1 Reply
  • 1 Reply
  • Digital Committee App. And Interest In Service Fee?

    Umer updated 7 months ago 2 Members · 1 Reply
  • Umer

    Moderator August 3, 2023 at 11:21 am

    As a Principle:

    Demanding profit on loan is Riba (Sood) and is Haram in Sharia. No amount should be charged as a profit on loan or credit given to another party. However, late payment surcharge and/or service charges may be charged from the client. Service charges are those charges which are not demand of profit on loan amount and its usage, rather they are other charges which are incurred because of other ancillary matters related to that credit arrangement or related to that service being provided in addition to loan e.g. for writing up of loan contract, for acting as an intermediary etc.

    Also, it is consumption of interest which is Haram, the one who has to pay interest to others (due to any personal reason) can do so as Quran has not condemned the person who pays interest, (Please see: Discussion 72050)

    Regarding this App. Oraan:

    It is principally not a loan transaction, rather it is a pool of money contributed by people from where people get a share on their turn (closer to insurance premium) and in case a person wants to get a payout which is out of turn, then he/she has to pay an extra fee which is justifiable and can be categorized as Service Fee. There is no element of interest in this arrangement.

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