Khums: How to Calculate Khums in a Ribā-Free Loan Fund with Rotating Capital?

Practical Laws of Islam as per the teachings of Imam Khamenei

Khums: How to Calculate Khums in a Ribā-Free Loan Fund with Rotating Capital?

English:

Question #938:

A group of people want to establish a ribā-free loan fund in order to provide loans to each other in times of necessity. In addition to the initial contribution, every member is required to pay a monthly amount to increase the capital. Will you kindly explain how each member is to calculate his khums? Moreover, as the fund’s capital is continually loaned out to the members, how is it possible to pay its khums?

Answer #938:

If every person has paid his share using the earnings on which the khums year has passed, he must pay its khums. But if he paid his share during the khums year, then khums should be paid at the end of the year if he is able to withdraw the money. Otherwise, before he withdraws it from the fund he is not liable to khums, but when the withdrawal is possible, he should pay its khums immediately.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Khums