Silent Partnership: Borrowing Under “Silent Partnership” with Monthly Profit Charges

Practical Laws of Islam as per the teachings of Imam Khamenei

Silent Partnership: Borrowing Under “Silent Partnership” with Monthly Profit Charges

English:

Question #1883:

What is the view on borrowing money under the title of “silent partnership” from people who charge between 4% and 5% monthly as a “profit” according to the contract?

Answer #1883:

Borrowing money in this way has nothing to do with silent partnership. Indeed, it is borrowing with ribā that is ḥarām. It will not become ḥalāl by deceptively giving it another name, although the loan contract is correct and the borrower becomes the owner of the money he borrowed.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Silent Partnership