Social Activity

Rulings for Fine that is given to the Social Activity

Rulings for Fine that is given to the Social Activity


I’d like to buy a car using the renting and buying contract or what we called, ‘ijarah al muntahi bit tamlik [musyarakah mutanaqishah]. There is a stipulation in the contract, saying that if I was late to pay the installment for 15 days, than I’ll be fined for 5000 riyal and the fine will be given to social interest. What is the ruling for this stipulation?


The transaction of renting and buying is an unlawful transaction because it contains uncertainty/unclarity. Another reason for its unlawful state is that ones who rented goods through this system usually were those who wanted to posses the goods they rented. Hence, this transaction is included in the saying of the Prophet that prohibited the transaction of selling and buying that contains prohibited stipulation (ba’i wa syarth) and his saying that prohibited the unclear transaction. The unclear point in this transaction is that if the buyer is unable to settle his installments, then he’ll lost his money in vain. There is no doubt that such transaction contains an element of chance.

Regarding the fine which status is an unlawful, usury money, that is given to aid the social activities, then simply by giving the money to social activities doesn’t necessarily
cause the fine to be legal. Thus, the money is still unlawful money which is not allowed to be given as alms, unless it is done to free the spender from unlawful money, not to seek Allah’s reward. Because Allah’s reward is something decent, and He will not accept alms but from a decent source. And basically, something comes from indecency will only bring indecency too.

Fatwa issued by Sheikh Abdullah Ibn Shalih al Ubailan, and it could be read here:

Author: Ustadz Aris Munandar, MPi

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