Creating a Company to Assist in Paying Off Interest Loans

22-12-2025 | IslamWeb

Question:

I am looking to open my own accountancy practice and as many companies often take riba loans I am planning to offer a get debt free programme as part of my work for my clients so I would work as their accountant on the condition that if they have an interest loan to aim to help pay it off and not get in debt again to continue to use my services. Would this be permissible.

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Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad () is His slave and Messenger.

It is permissible to assist companies whose core business activities are lawful in repaying the principal amount of their debts, without the usurious (interest-based) increases, subject to the condition mentioned in the question.

As for the usurious increases, the basic ruling is that it is prohibited to pay them or to assist in paying them. Allah the Almighty Says (what means): {And if you repent, then you may have your principal – neither wronging nor being wronged} [Quran 2:279]

However, if the company is compelled to pay the usurious increase and has no way to avoid paying it, then it is permitted to pay it as a concession, in consideration of necessity.

Allah Knows best.