Q: I gave a sum of money to a fruit and vegetable merchant
Knowing beforehand that such a merchant fears Allah, performs all his religious duties and that he trades in vegetables and fruits, I gave him a sum of money to invest. We both agreed that he gives me 30 pounds as a monthly profit per 1000 pounds. I am really confused. Is such monthly profit Halal (lawful) or Haram (prohibited)? Is it included under Riba (usury/interest)? Please, inform me so that I may find peace of mind and please Allah. May Allah grant you success in serving Islam and Muslims!
It is impermissible
to give a fruit and vegetable merchant a sum of money and take a specified monthly profit according to the presentation mentioned above. Actually, such transaction involves Riba. It is permissible only when you agree on a common known percentage of the net profit such as half, one third or the like.
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.