Ufone has a service for its prepaid customers named ULoan. Under this service, Ufone gives Rs.15 advance balance (loan). Customers can later on pay-back this loan on card recharge.
Ufone’s customers started complaining since last few weeks and several SMS are floating in the country about the additional transaction charges which were being applied on the ULoan service that the extra charges which Ufone is taking is actually Interest (Suud), which is Prohibited (Haram) in Islam, alarming people to stop using Uloan as it is propagating Haram thing among the public.
If you check out ULoan’s details, it is clearly mentioned that transaction charges of Rs. 0.50 will be applied. It’s a general notion that we don’t give much emphasis to the terms and conditions of any service. So, we can’t say how many people read the details before using this service.
To clear this confusion ProPakistani contacted Ufone and asked for their viewpoint, which is given below:
It is absolutely clear that any charges deducted on Uloan cannot be classified as interest. Interest in any circumstances means that it has a compound effect and it multiples with time. Also those who fail to pay are penalized with extra charges in all the interest based products.
In the case of ULoan the customer has to pay onetime fixed charges. These charges remain the same whether the customer reloads the account after a month or after four months. There are also no penalty charges for not reloading in a fixed time period. These charges on ULoan are simply a transaction fee. All other cellular operators also charge for different services where amounts are transferred either from the company or even between the customers themselves.
It is unfortunate that a product that has utility for millions of customers and is an industry trend setter has been targeted with baseless propaganda.
Where as an Aalim of Jamia Aloom-e-Islamia, Banori Town, Karachi said that the extra charges which Ufone is taking is clearly Interest (Sood) which is Prohibited (Haram) in our religion. Check out the below screenshot (Taken from official website of Jamia Aloom e Islamia):
Let me talk about Mobilink which also has a similar service named Jazz Advance under which Rs. 5 advance balance is given to the customers. But Jazz only charges back Rs. 5, no transaction charges are applied to utilize this service.You can check out Jazz Advance details.
Now It’s upto you people to decide. Is Ufone actually taking Interest or it’s just an attempt to damage Ufone’s Brand image?
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This is the clear case of non understanding of a product by an Aalim. If you classify “Service Charges” as interest then why you pay mobile bill. (Now, you may understand the reasons why we don’t produce Scholar/Scientists like Ibn-ul-Hashim)
Just translate the word Service in Urdu, it is “Khidmat” OR “Mazdoori”. And you can recall a long list of Hadiths on this topic.
In ULoan’s case they are charging fee on providing service NOT an interest which is charged on the base of principle amount
As per my understanding it is fact that we cannot define it as a interest. I want to bring the attention of the customers that once they get the loan of Rs 15 they return Rs 15.60 Paisa but they do not pay the tax on Rs 15 that is required to be charged on the Loan. It is just a propoganda of the Moulvies. It can be sevice charges or it can be tax on the Rs 15. It is my request from all of you that do not circulate such messages because it may confuse to an illeterate person because SOOD is a very big term and we all may be de track.
I am a bit confused now,about interest.
If my friend gets a loan from me,
say e.g. Rs. 100 and I say you have to give me Rs.110 back(i.e. fixed amount)
is this counted as interest as well ?
I thought interest would be counted as :
If my friend gets a loan from me,
say e.g. Rs. 100 and I put condition like :
you can give me Rs 100 anytime, but you have to add 0.5 % each month you delay the payment.
Perhaps someone from accounting background can clear my thoughts.
Brother it Business………..Ufone or whatever can’nt give you money free of cost…..If u believe i am wrong then go to bank even islamic bank and ask for loan……….then they’ll definitely charge you some thing extra for their money……..