Is It Permissible to Earn from Developing a Loan Calculator App That Uses Interest-Based Inputs?


Hanafi Fiqh

Answered by Mawlana Ilyas Patel

Question

Is it permissible to earn from developing a loan calculator app that uses interest-based inputs?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

If the application is specifically designed for interest-based loan calculations, such as mortgages, car loans, or personal loans with interest (riba), then developing or profiting from it is not permissible, as it facilitates a haram transaction.

However, if the app serves a general purpose—like general financial planning or educational purposes without directly promoting interest—it may be permissible.

Assistance in Sin

In the Hanafi School, this has levels:

  1. It is haram to do that which is a direct cause for sin;
  2. It is disliked to do that which is an indirect cause for sin;
  3. It is better to avoid that which could be a cause for sin.

[Ibn ‘Abidin, Radd al-Muhtar; Zayla‘i, Tabyin al-Haqa’iq]

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I pray this helps with your question.
Wassalam,
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani

Mawlana Ilyas Patel has received a traditional education in various countries. He started his schooling in the UK and completed his hifz of the Quran in India. After that, he joined an Islamic seminary in the UK, where he studied secular and Aalimiyya sciences. Later, he traveled to Karachi, Pakistan, and other Middle Eastern countries to further his education. Mawlana has served as an Imam in the Republic of Ireland for several years and taught the Quran and other Islamic sciences to both children and adults. He also worked as a teacher and librarian at a local Islamic seminary in the UK for 12 years. Presently, he lives in the UK with his wife and is interested in books and gardening.