Peer to peer lending (P2p)

Investment Questions and Chats General Investment
#1

Assalaamu alaykum wa rahmatullahi wa baraktu

What are the shariah laws around P2p lending?
I’m looking into various forms of investing in order to build my wealth and a course I’m taking speaks about this.

It’s a form of a loan so from my understanding there’s no way to get financial gain because it(a loan) should be intended as a charity.

Is this accurate?

If there is any insight into this topic I would really appreciate it

JazakAllahu khairan

#2

Wa alaykum salaam,

If the P2P lending is structured as a loan and interest is paid, then it will not be shariah compliant. However, if a P2P platform is structured with a Shariah structure, then it has the potential to be Shariah compliant. However, in that instance, you should check if they have a Shariah board.

Kind regards