What can interest be used for?
Who must interest be given to?
Can traffic fines be paid with interest?
Can employee bonus be paid with interest?
If an employee or any other person want a loan, can it be given with interest?
If someone lays a false claim on you for damaged property, which you have not damaged, can it be paid with interest?

1) Interest must be returned to the person from whom it was received. If it is not possible then it must be given away as charity( without the intention of gaining reward).
2) Interest can be given to a poor Muslim or non-Muslim. Interest can also be donated to public organizations such as hospitals, libraries,Schools etc.
3) Traffic fines cannot be paid with Interest as this is deriving benefit for yourself.
4) Employee bonus may not be paid with Interest.
5) If an employee is poor person, then interest can be given to him as a loan. The re-payment of this loan will not be requested.
6) If the person upon whom the false claim is made is poor, then it will be permissible for him to use the interest to pay the false claim. If he is rich then it will not be permissible to use interest.

And Allãh Ta’ãla knows best

Mufti Muhammed Ashraf
30 November 2011 / 04 Muharram 1432