Generating Passive Income Without Interest

Hello y’all,

I’m looking for some advice on generating passive income. Due to my religious beliefs, I’m unable to earn or make any money off of interest (riba). This makes many traditional passive income avenues like savings accounts, CDs, or interest-bearing investments not viable for me.

I’ve been exploring other ways to create passive income streams but am a bit overwhelmed by all the options out there and would appreciate some guidance. Specifically, I’d love suggestions on opportunities that align with these principles, such as:

  • Halal investments that don’t involve interest.
  • Business models or side ventures that can generate income with minimal ongoing work.
  • Real estate options that avoid interest-based mortgages.

If anyone has experience with this, or knows of ethical and religiously compliant ways to generate passive income, I’d be very grateful for your insights…

Change your religion.

Archer said:
Change your religion.

Sorry for such disrespectful and unhelpful replies. There are definitely ways to profit passively without charging interest, but this forum isn’t very keen on religious tolerance.

Buy shares of companies; that gives dividend yield, not interest.

No solution, but I’m very curious about which religion this is.

Parker said:
No solution, but I’m very curious about which religion this is.

Islam.

Marlow said:

Parker said:
No solution, but I’m very curious about which religion this is.

Islam.

Hmm, I didn’t know that. Interesting.

Parker said:

Marlow said:
Parker said:
No solution, but I’m very curious about which religion this is.

Islam.

Hmm, I didn’t know that. Interesting.

The simple explanation is that we can’t make money off of money. Hope that helps.

@Merlin
It does. Is there an explanation for why you shouldn’t?

Parker said:
@Merlin
It does. Is there an explanation for why you shouldn’t?

Interest is haram, but marrying a 6-year-old is halal.

Parker said:
@Merlin
It does. Is there an explanation for why you shouldn’t?

Because the poor get poorer and the rich get richer. In Islam, doing business is wajib or allowed and encouraged in an honest way, similar to how our Prophet used to conduct business. But interest is seen as haram. Islam talks about wealth distribution among all classes.

Parker said:
@Merlin
It does. Is there an explanation for why you shouldn’t?

Riba (interest) is haram because Allah has forbidden it. That’s the answer, but it’s also seen as exploitative gain. Look at how it ruins people who take out car loans, for example, or any with an exorbitant APR. It is also considered worse than zina (fornication/pre-marital intercourse).

@Merlin
It’s silly, though, because money literally has a time value, and ignoring that is ignoring reality. Time Value of Money: What It Is and How It Works

Teegan said:
@Merlin
It’s silly, though, because money literally has a time value, and ignoring that is ignoring reality. Time Value of Money: What It Is and How It Works

The simple answer is that God has said what is forbidden and what isn’t. We can’t argue it or find loopholes. It may be ‘silly’ for someone who isn’t a Muslim since that reflects their bias against the religion.

@Merlin
The issue is that if you run a business like that, you’ll be at a major disadvantage.

Teegan said:
@Merlin
The issue is that if you run a business like that, you’ll be at a major disadvantage.

Fair enough, but there are ways to make money other than with interest.

Merlin said:

Teegan said:
@Merlin
The issue is that if you run a business like that, you’ll be at a major disadvantage.

Fair enough, but there are ways to make money other than with interest.

This comment is empty, admin should fix.

Marlow said:

Parker said:
No solution, but I’m very curious about which religion this is.

Islam.

This!

Nash said:

Marlow said:
Parker said:
No solution, but I’m very curious about which religion this is.

Islam.

This!

Oh, but I’m sure you have no problem with zakat, right?

Parker said:
No solution, but I’m very curious about which religion this is.

For real.