Loan or investment

We often hear that a person has become indebted. He had borrowed money from people to do business. And finally, he went bankrupt and people are asking him back their money. In this case, one has to see if these people had borrowed him money or they had invested with a defined profit margin. If they had borrowed, they are entitled to the money borrowed. If the person has suffered a loss, it has nothing to do with them nor are they entitled to the profit that the person got otherwise this surplus will be Riba (interest). But if they had invested, then in case of a loss, they must accept to lose and they will have no right to claim anything. Unless if it is proven that there was negligence or dishonesty, then the person must repay them what they had invested.

[Version française de "L'emprunt ou l'investissement" – Al Jamiat – Vol.6 No.11]