Category: Business Matters
Fatwa#: 37464
Asked Country: Afghanistan

Answered Date: Apr 12,2017

Title: Can I work for a Micro finance Company?


I married for four years having 2 kids, my family is in Pakistan and I am working one Media Group in Kabul, Afghanistan in Finance department. Due to kids growing up, I want to come back to pakistan on priority basis.

Last week I gave one interview in islamabad Pakistana and are feeling very positive that they will offer me job but that company is Microfinance organization providing small and medium size loans to needy people on interest. My role will be compliance manager who will ensure compliance with all organizational policies and procedures and will review each credit case and provide my recommendation also. Moreover I will also provide analysis for management about organizational performance.

Keeping in view the above situation whether I should accept their job offer or not? I did the job in the same microfinance sector for three year from 2011-2013 but i feel that it is not Halal and I have asked for mercy from Allah on that, please advise me as I do not want to make any decision which will negatively affect my 2nd life but I do want to go back to my country to live with my family and parents. Please advise.



In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.


The core responsibility of a compliance officer/manager is to ensure the company complies with its outside regulatory requirements and internal policies. Additionally, a compliance officer/manager may also design or update internal policies to mitigate the risk of the company breaking laws and regulations, and lead internal audits of procedures.[1]


A microfinance institute deals in a type of banking service that is provided to unemployed, low-income individuals, or groups who otherwise have no other access to financial services or limited resources. Usually a microfinance provides (small) loans to those who are unable to receive a loan from a conventional bank.[2]


You state in the job description, “…and will review each credit case and provide my recommendation also.” Since you will actively be involved in providing interest-bearing loans and the core business of a microfinance institute is to provide interest-bearing loans, it is not permissible to work as a compliance manager for a microfinance organization.[3]


We advise you to situate yourself in a location most suitable to earn a Halal living, whether it be Pakistan or Afghanistan.    


And Allah Ta’āla Knows Best

Abdullah ibn Mohammed Aijaz

Student Darul Iftaa
Baltimore, USA 

Checked and Approved by,
Mufti Ebrahim Desai.


 إمداد الأحكام، ج 4، ص 386-390، مكتبه دار العلوم كراتشى

Contemporary Fatawaa, Vol 162, Idara-e-Islamiat

















2. Non-Life Insurance Companies (property, car, liability, etc). The second type of insurance companies are non-life. They insure houses, cars, etc. Their total capital is broadly speaking, composed of the following:

a.) Investment Capital [Halal]: Assumed halal as long as there is no proof to establish otherwise.

b.) Insurance Premiums [Haram]: The reason this is haram is because the company obtained this amount through a prohibited transaction. Here, this transaction differs from the loan taken by the life insurance company in the previous example because in this case it is not known if the company will have to pay for damage to the car or to the home. This entails contractual uncertainty [gharar] and interest [riba] and as a result, is an invalid [batil] transaction which means these funds are haram.

أما أقساط التأمين فأنها حصلت عليها الشركة بعقد محظور...وعلى هذا فأنه عقد باطل مثل الربوا وأقساط التأمين التي أخذت من أصحابها كلها حرام - المرجع السابق، ص. ١٠٦٨ - ١٠٦٩

c.) Profit accrued [Haram]: This money is haram.

Ruling: The majority of the capital in non-life insurance companies is haram, and an employee of this type of company needs to take into consideration that a large part of the initial investment capital (the only halal source of funds in this case) was quiet possibly  spent on infrastructure and start-up costs.

Whatever halal capital is left over, if any, should be equal to or greater than what the employee (performing a permissible function) receives in a non-life insurance company for the duration of his employment there for the entire income to be deemed halal. However, even in this case it will be better to avoid working in any insurance company.

If the halal capital has been exhausted in infrastructure or other costs or is not enough to cover the entire duration of his employment, then whatever wealth the Muslim employee receives from the haram funds of the insurance company will be haram (assuming his duties are all permissible in nature otherwise it would not be permissible to work there in the first place).

An example to clarify the above is what is related from Imam Muhammad (may Allah have mercy on him):

A man usurps [gasb] 10 dinars and adds 1 dinar of his own. The usurper [gasib] then gives another man 1 dinar from these 11 dinars, it will be permissible for the latter to take this 1 dinar (since from that 11 dinars, 1 dinar was from halal wealth.)

If the usurper gives the man another dinar from the remaining 10 dinars, it will not be permissible to take it since this second dinar is from haram wealth. Here, the halal portion of the 11 dinars is much less than 51%, but it was permitted for the person to take up to the amount of halal wealth present in those 11 dinars.

فلم يبق من المحكوم عليه بالحلال في أموال الشركة إلا رأس المال. وحينئذ صارت أموال الشركة مخلوطة بالحلال والحرام...وقدمنا في أحكام هذا القسم أنه لا عبرة في بالغلبة بل يجوز التعامل معها بقدر ما فيها من الحلال...ولكن ينبغي أن يؤخذ في عين الاعتبار أن قدراً كبيراً من رأس المال يصرف عند إنشاء الشركة... - المرجع السابق، ص. ١٠٦٩

Note: A general rule is then established: Even if a company's haram funds are 51% or more of its total capital, the employee's salary will still be deemed halal. This, as long as: a.) the halal and haram wealth of the company is mixed together and not separated from one another b.) the halal funds are enough to cover the employee's salary for the duration of his employment there and c.) the employee is performing a permissible function. 

وقد إشتهر على الألسن أن حكم التعامل مع من كان ماله مخلوطاً بالحلال والحرام أنه إن كان الحلال فيها أكثر جاز التعامل معه...ولكن ما يتحقق بعد سبر الكلام الفقهاء الحنفية في هذا الموضوع أن اعتبار الغلبة إنما هو فيما إذا كان الحلال متميزاً عن الحرام عند صاحبه ولا يعلم المتعامل معه أن ما يعطيه من الحلال أو من الحرام...أما إذا كان الحلال مخلوطاً بالحرام دون تمييز أحدهما بالآخر فإنه لا عبرة بالغلبة في هذه الحالة في مذهب الحنفية بل يحل الإنتفاع من المخلوط بقدر الحلال سواءٌ أكان الحلال قليلاً أم كثيراً - المرجع السابق، ص. ١٠٣١ - ١٠٣٢

 ينظر: فقه البيوع ٢/ ١٠٢٧ - ١٠٣٨ و ١٠٦٦ - ١٠٦٩ وقد بسط فضيلة الشيخ المفتي محمد تقي العثماني - حفظه الله - الكلام في هذا الموضوع وأثبت بأدلة كثيرة أنه لا عبرة  بالغلبة في هذه الحالة في مذهب الحنفية. ونذكر هنا بعضها على سبيل المثال لا الحصر

أ - جاء في الدر المختار: "أو اختلط المغصوب بملك الغاصب بحيث يمتنع امتيازه...ضمنه وملكه بلا حل انتفاع قبل أداء ضمانه" إن الضمير المنصوب في "ضمنه وملكه" يرجع إلى المغصوب لأنه محل الضمان والملك الجديد. أما ماله الحلال فلا هو يضمنه ولا يحدث له فيه ملك جديد. وقوله "بلا حل انتفاع " متعلق بالضمان والملك الجديد، وليس متعلقاً بماله الذي لا يضمنه للمغصوب منه، وهو مملوك له قبل الخلط. فظهر أن عدم حل الإنتفاع متعلق بالحصة المغصوبة فقط

ب - ما روي عن الامام محمد رحمه الله تعالى في حل الإنتفاع بقدر الحلال بصراحة. جاء في التتارخانية عنه: "غصب عشرة دنانير فألقى فيها ديناراً ثم أعطى منه رجلاً ديناراً جاز ثم ديناراً أخرى لا" والحلال ههنا أقل ولكنه أجيز بقدر الحلال بدون اعتبار الغلبة

ج - ما أفتى به الشيخ أشرف علي التهانوي رحمه الله تعالي. فسئل عن رجل يسكن مع أبيه و إخوته الذين يكسبون عن طريق الرشوة ومال السائل حلال. وهو يشاركهم في مصاريف البيت. فأجاب رحمه الله تعالي: "الخلط استهلاك والاستهلاك موجب للملك. فإن كانت هذه المبالغ تصرف مجموعة يجوز للسائل حسب الفتوي وإن كان خلاف التقوى. وإن كان كل أحد يصرف مبلغه على التعاقب مميزاً عن المبالغ الأخرى فعندما يصرف مبلغ الرشوة فإن أكله حرام للسائل" - إمداد الفتاوى ٤/ ١٤٨ سؤال ١٨٢

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