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TMCNet:  Cellcos advance loan is not Haram

[May 25, 2014]

Cellcos advance loan is not Haram

(Flare (Pakistan) Via Acquire Media NewsEdge) “Fatwa Department of Jamia Binoria has issued a decree (fatwa) the advance loan service of cellular operator companies is not based on interest or riba, hence not haram but could be used by consumers as per their convenience” Pakistan is an Islamic state because we got it in the name of Islam and 97 percent of its population is Muslim. Some people are very conscious and always follow the principles of Islam. I want to mention here that Asad Khan who is the resident of Malakand raised the issue to Jamia Binoria regarding a decree (fatwa) the advance loan of cellular operators. Fatwa Department of Jamia Binoria has issued a decree (fatwa) the advance loan service of cellular operator companies is not based on interest or riba, hence not haram but could be used by consumers as per their convenience.


Some mobile phone service provider companies have introduced advanced loan services up to Rs 30 is deposited to consumers when they are out of balance but in need to consume airtime on requirement. The companies deducted Rs 30 amount along with Rs 4+tax charges on the recharge of the next balance besides 19.5 percent sales tax. However, a significant number of consumers believe the service is un-Islamic and strictly prohibited in Islam. They avoid using the services even at times of dire need and use telephony service with upload of new balance.

It has been observed because many of the scholars termed the services as Riba and prohibited in Islam initially because the term “loan” is used in the service and its deduction is made with additional charges, which actually comes under interest. Scholars of Jamia Binoria have not rejected the previous stance alone but they explained the way cellular phone operators provide loan to customers with permission and an advocate.

Cellular phone companies previously explained to their customers that interest was not levied on the service but it was actually service charge of the firm which it take against operational expenses. A big section of the consumers did not accept the reason of cellular operators because it first initiated the offer with Rs 10 and reimburse the same amount without any deduction on the recharge of the load.

Later, not only service charge was imposed on the service but GST was also levied on it which reduced its importance gradually. But there are many companies currently offering loan services to their customers and it is expected that one of them have requested a Sharia verdict from the religious seminary. Ufone is the first operator in the industry started offering advance loan services. It followed by different telecom operators and all are offering this service at present.

Every network provides advance loan balance in Pakistan. But every network has different method to provide advance free loan balance on mobile. Also loan amount given by each network vary from different amounts. For example, Ufone gives advance loan balance on mobile of 10 or 30 rupees, Jazz gives advance of 10.

Zong gives Rs 50 through its Rescue Service, Telenor gives Rs 3 and Warid gives Rs 10 advance loan balance on mobile phones. All methods of how to get these advances loan on mobile. Ufone Advance Balance: Simply Dial Stare 456# from your Ufone and get Rs.10 or Rs.30 advance loan balance on your mobile. Jazz Advance Balance: Dial 123 from your Jazz connection and press ’6' you will get Rs.10/- advance on your mobile. Zong Advance Balance: Go to write message and type RESCUE and send message to 911. Zong gives different amounts. Telenor Advance Balance: Telenor use the name of this service Auto Advance and its give you Rs.3/- as advance. You don’t need to get this advance balance its auto get Rs.3/- as advance when you are calling someone and you balance get finished. Warid Advance Balance: To get Warid advance balance Go to Less than write message Greater than then type AB and send to 7676. You will get advance balance on your Warid number. Rs: 12 will be added to your account. Service charges are Rs: 2 + tax.

Cellular operators have introduced many others services and earned million of rupees besides of mobile phone service. In the recent State Bank of Pakistan latest report said, the investments and revenues in telecom sector witnessed growth 11.7 percent and 4 percent in the first half of current financial year 2013-14.

The investments in the sector improved to $121 million in 1HFY14 on the network swap of cellular phone companies for upgrading 3G networks. It depicted imports of telecom sector mainly for telecom equipments and mobile handsets also up by 54 percent up to stand at $662 million.

There are many companies currently offering loan services to their customers and it is expected that one of them have requested a Sharia verdict from the religious seminary

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