I have taken one SBI policy - "SBI Life - Smart Money Back Gold", policy number: 1N579217602, in this policy they cliam that they are giving profit from 6-22% and not interest, my CA recommended this policy to me to save some income tax, can you please help me finding if it is halal for me to take this policy, although I've already taken this policy but if it is haram then I will terminate this policy inshAllah.
Some more details in case if it is required - I've already paid one installment (Rs. 1,05,993.10 /-) in this year out of 12, and it will get mature after 25 years.

JazakAllah khair
email: maroof@outlook.in
Call@: +91 9468751786
asked Oct 3, 2023 in Usury / Insurance by Syed Maroof Ali

1 Answer

Ref. No. 2609/45-4055

In the name of Allah the most Gracious the most Merciful

The answer to your question is as follows:

In business and trade, sometimes there is profit and sometimes there is loss and both may go up and down too. In the above mentioned case, the profit rate is fixed, so you would get the specified profit in every case, thus it is not a trade, but it is an interest gaining policy where you are giving your money at 6% interest, which is absolutely forbidden in Shariah. So it is not permissible to take the above policy and earn profit from it. You should terminate it immediately and adopt a halal method of trading.

عَنْ جَابِرٍ، قَالَ: «لَعَنَ رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ اٰكِلَ الرِّبَا، وَمُؤْكِلَهُ، وَكَاتِبَهُ، وَشَاهِدَيْهِ»، وَقَالَ: «هُمْ سَوَاءٌ»".

(صحیح مسلم ، کتاب المساقات،3/1219، دار احیاء التراث ، بیروت)

(قوله لأنه يصير قمارا) لأن القمار من القمر الذي يزداد تارة وينقص أخرى، وسمي القمار قمارا لأن كل واحد من المقامرين ممن يجوز أن يذهب ماله إلى صاحبه، ويجوز أن يستفيد مال صاحبه وهو حرام بالنص.

(ردالمحتار علی الدر المختار ، کتاب الحظر والاباحة،فصل فی البیع، ۶/۴۰۳،ط:سعید)

And Allah knows best


Darul Ifta

Darul Uloom Waqf Deoband


answered Nov 12, 2023 by Darul Ifta