I have shares in a certain company and there are rumours that the company is planning to take a Riba-based loan. What is your advised?
When buying shares in any company, we should make sure that its activities, sources and products are permissible. In other words it is not permissible to buy shares in a company whose activities are not permissible by Shariah such as interest, gambling, prostitution and the like. It is also not permissible to buy shares in a company whose activities are permissible but it lends or borrows money on the basis of Riba, because shares are part of the company’s wealth, and the shareholder is a partner in all the transactions that go on. Every Muslim who is keen to avoid Riba and its consequences should make his/her position clear to the company, and state that he will leave if the company takes a Riba- based loan.