Question Summary:
Interest income

Question Detail:

I am currently working in a bank and look after small business segment. I extend loans to small companies and interest is chrged on these loans. I have been trying to get out of banking and have two potential opportunities to move out of banking. Kindly let me know which one is "Halal" or atleast close to "Halal" out of the following two:
1) The first opportunity is with a consulting firm that is in the business of advising banks on how they can increase profitability and revenue, improve efficiency, build their brand name, improve operational excellence etc. If I work with them I will be advising banks on all these issues. This firm does not advise any firm or organization outside banking. My whole experience and expertise will continue to develop in banking.
2) The second option is working with a subsidary of an Information Technology firm. This subsidary has been developed by the parent firm to extend lease and finanncing facility to the customers of the parent company to buy their products. Various leasing and financing options are extended and customers payback the amount over an agreement timeframe and interest rate is charged. In this option I might also get an opportunity at a later stage to move into the parent firm or some other department that takes me completely out of leasing segment.
I thank you in advance for your advice and help. May Allah shower His blessings on you.

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
At the outset, we commend you for your sensitivity on earning halal and striving to abstain from haram. It is this attitude that brings Barakah (blessings) in one’s earnings.
Shari’ah strictly prohibits and condemns all forms of Riba (interest).
The Q         uran explicitly warns against the use of interest,
يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ. فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ.
“O those who believe, fear Allah and give up what still remains of the Riba(interest) if you are believers. But if you do not then listen to the declaration of war from Allah and His Messenger”. (AlBaqarah, verse 278,279)
 
It is mentioned in a Hadith, 
عن جابر قال: لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه(مسلم)
“Rasulullah (Sallallahu alayhi wasallam) cursed the one who consumes, deals, records and bears witness for interest based transactions”. (Muslim1598)
In the above mentioned job opportunities, we do not know what exactly what particularly your job will entail. There is a possibility that you may be dealing with interest in either job.
Hence, we advise you search for a job that is completely free from Haram. All efforts must be made to ensure one’s income is free from any Haram elements, even if it means an extra sacrifice or less income. As Muslims have to abide by the commands of Allah Ta’ala and have complete faith that in doing so comes Barakah and blessings, and violating the Shariah incurs the wrath of Allah Ta’ala.
 “And whosoever fears Allah and keeps his duty to Him, He will make a way for him to get out (from every difficulty), and will provide him sustenance from where he never even imagined. And whosoever puts his trust in Allah, Allah is sufficient for him.”Qur’an 65:2-3
 
And Allah Ta’āla Knows Best
Arshad Ali
Student Darul Iftaa
Trinidad
Checked and Approved by,
Mufti Ebrahim Desai.
http://www.daruliftaa.net/