Aoa fellows
In my opinion this thing is halal and allowed but some moulanas call this as haram. Their logic is that it is ribba or sood.
I am strictly against sood as it is declaration of war against Allah but I am not getting how come prize bonds got sood .

Please put me wise.


Regards


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What is the rate,return,risk,investment or profit for both parties?

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"If we don't stand for something, we may fall for anything."

You buy a bond which you can reedem any time to its originol amount however lucky winners will get prize through lucky draw.
No risk on actual amount.
No profit if you do not get prize in draw.

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Whatever the mind of man can conceive and believe, it can achieve. –Napoleon Hill

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Work until your idols become your rivals.

Lets first understand Riba....

Riba is a fixed profit, which absolves the lender from any risk factor and the risk factor is only borne by receiver....For example even if receiver's money is lost ,he is entitled to pay the profit to lender ,whether he earned 100 or lost 100....

I think in case of prize bonds,the interest is calculated and added in a single pool against each investment and then this interest is alloted to a single investor instead of distributing the share equally,according to the profit...

I am not quite sure about how they ascertain the profit here...Do the government decides profit according to the profit gained?


And gambling (occurance by chance/luck) is also prohibited in Islam....Because of lucky draw it is somewhat close to gambling..

And you remember the Hadith which asks to avoid doubtful things about which you are not sure that if they are halal or haram

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"If we don't stand for something, we may fall for anything."

Thanks a lot shooting star
It has made the issue crystal clear but I want to post some links here which says it is haram on the plea of ribba. also if we google the key word "prize bond halal or haram" most of the results show that it is haram.
http://islamqa.org/hanafi/qibla-hanafi/37155
http://www.ummah.com/forum/showthrea...ze-bonds-halal
http://qa.sunnipath.com/issue_view.a...D=1829&CATE=43

What actually made me to post this topic is the today's Jumma Edition of Daily Mashriq Peshawar in which there was this question as:


Expert opinion required please.

About the source of the profit or money for profit one of websites I quoted in my previous post says as follows
"The reason for this is that, in prize bonds interest is added (according to the ratio of investment) to each person’s original investment and gathered in a joint pool. Then, instead of returning each person their interest, it is all given to the individual who won the prize. Therefore, this prize is pure interest and unlawful."

I am very much confused on this issue.

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Whatever the mind of man can conceive and believe, it can achieve. –Napoleon Hill

w salam
basically prize bond is the reward paid by the government to an individual and as per ISLAM the reward paid by government is HALAL . Thats why it is HALAL.

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MAY ALLAH BLESS ALL MUSLIMS

Dear,though i am not an expert,but i have studied couple of courses of Islamic rules of Business including Islamic Banking & finance during my BBA(hons) program in IIUI....

I am telling you what i have been taught,by not a typical Mullah but i have studied this course from a very knowledgeable PHD doctor of International Islamic University,who by no means is negligible and quite inferior to Mufti sahb...

And to me it makes sense,but it is up to you to agree with this view or not..

As i was told by respected sir that we have 2 factors in case of prize bonds,one Riba and second one is Gambling...

What your senses say about element of gambling here?what do you think whether a lucky draw is tantamount to gambling or reward?And on what basis a certain individual deserves a reward and others do not?..You can rename riba to interest and interest to reward...


And you have himself studied the interest factor from other sources as well...

Lets suppose,you are still not satisfied with the logic that it is haram or halal,but i am sure that it leaves you in doubt and according to Hadith we are told to avoid doubtful things...

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"If we don't stand for something, we may fall for anything."

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very well said.
Plus when our religion has laid emphasis on working hard , how can one be satisfied with such money that has been earned without any effort and consider it halal.

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I am a great believer in luck and I find the harder I work, the more I have of it .

What about those lucky draws such as ufone is offering a car through draw when someone spends 300 RS? I have spent Rs 300 for my own needs , not to enter the draw. so is it halal?