Assalamualaikum Mufti Saab,
Hope you are doing well.
I came across this platform that provides loans on an income percentage share basis. Below are a few details from their website (fundmebff.com). Can you please advice if getting a loan from here is permissible?
Jazak Allah khair.
Product and its Benefits
Our Product: It is not a loan. We provide you with the money you need up front and in return, when you are working, you share a fixed percentage of your income for an agreed upon fixed period.
A major advantage of our product: Your payments are designed to stay affordable. If your income decreases, your payments decrease too!
How do we make money?
For each investment we make, we have a target rate of return. Unlike a loan, we do not hold you liable if we don’t reach our target rate of return. That’s why our Income-share agreements are truly investments and not loans. We only do well if you do well.
Historically, our target rates of return have been at least %25 less than what an interest-bearing loan for the same amount and over the same period would cost.
What is the funding process?
1- Start with filling out the application for funding.
2- If we’re interested in your initial application we may ask for some supplemental information.
3- After providing the supplemental information, we will work with you to reach an income-sharing arrangement that makes sense for both of us.
4- After agreeing to the terms, we will transfer the funds to your designated account.
5- When your income share period starts, you start sharing your income with us at the agreed-upon fixed portion and for the agreed-upon fixed period of time.
بسم اللہ الرحمن الرحیم
الجواب وباللہ التوفیق
We are not aware of this company. But if this company takes the same amount of money in repayment as given in loan, then it is correct to take a loan from it. But if they take extra money on top of the given loan, we need more details from you to provide our judgment on this.
فقط واللہ اعلم بالصواب