Short answer
Yes. The Prophet ﷺ bought food on credit from a Jewish trader and pawned his armour with him, and he died with it still pledged. Buying, selling, borrowing, hiring and partnering with non-Muslims are all allowed, as long as the deal itself is halal and free of interest.
Trade, employment, interest-free borrowing and pledges with non-Muslims are permissible. A partnership is valid, but it is disliked to leave a non-Muslim partner to run the money alone, since he may deal in riba or haram goods; the Muslim should make sure the business follows halal terms.
The four schools agree on this.
Explanation
Business across faiths was part of life in Madinah. Aishah reports that the Prophet ﷺ bought food from a Jew on credit and gave him an iron coat of armour as a pledge, and when he died, the armour was still pledged for thirty measures of barley. For the Hijrah he hired a guide who was not Muslim, trusting him with their camels and their route.
What is allowed:
- Buying from and selling to non-Muslims, including on credit.
- Working for a non-Muslim employer, or employing non-Muslims, in halal work.
- Borrowing from a non-Muslim friend, neighbour or colleague without interest, and giving security if asked.
- Business partnerships with non-Muslims.
What still applies:
- No interest: riba is haram whoever the lender is. A loan from a non-Muslim bank with interest is still riba. See Is it haram to pay interest?
- Halal goods and services: a partnership that sells alcohol or runs on interest loans is not allowed, even if your partner sees nothing wrong with it. Agree the business's terms in writing.
- Honesty both ways: cheating a non-Muslim is as haram as cheating a Muslim. The Quran criticises those who think there is no blame in taking what belongs to people outside their group (3:75).
Allah says He does not forbid kindness and justice toward those who do not fight Muslims (60:8). Fair business with non-Muslims is part of that, and it has often been the way people first came to know Islam. See What are the rules of business in Islam? The four schools agree on the basic permission.
The evidence
Quran, Surah Al-Mumtahana 60:8
لَّا يَنْهَىٰكُمُ ٱللَّهُ عَنِ ٱلَّذِينَ لَمْ يُقَٰتِلُوكُمْ فِى ٱلدِّينِ وَلَمْ يُخْرِجُوكُم مِّن دِيَٰرِكُمْ أَن تَبَرُّوهُمْ وَتُقْسِطُوٓا۟ إِلَيْهِمْ ۚ إِنَّ ٱللَّهَ يُحِبُّ ٱلْمُقْسِطِينَ ﴿٨﴾
Allah does not forbid you from those who do not fight you because of religion and do not expel you from your homes - from being righteous toward them and acting justly toward them. Indeed, Allah loves those who act justly.
Fair dealing with peaceful non-Muslims is allowed and good.
Quran, Surah Aal-i-Imraan 3:75
۞ وَمِنْ أَهْلِ ٱلْكِتَٰبِ مَنْ إِن تَأْمَنْهُ بِقِنطَارٍۢ يُؤَدِّهِۦٓ إِلَيْكَ وَمِنْهُم مَّنْ إِن تَأْمَنْهُ بِدِينَارٍۢ لَّا يُؤَدِّهِۦٓ إِلَيْكَ إِلَّا مَا دُمْتَ عَلَيْهِ قَآئِمًۭا ۗ ذَٰلِكَ بِأَنَّهُمْ قَالُوا۟ لَيْسَ عَلَيْنَا فِى ٱلْأُمِّيِّۦنَ سَبِيلٌۭ وَيَقُولُونَ عَلَى ٱللَّهِ ٱلْكَذِبَ وَهُمْ يَعْلَمُونَ ﴿٧٥﴾
And among the People of the Scripture is he who, if you entrust him with a great amount [of wealth], he will return it to you. And among them is he who, if you entrust him with a [single] silver coin, he will not return it to you unless you are constantly standing over him [demanding it]. That is because they say, "There is no blame upon us concerning the unlearned." And they speak untruth about Allah while they know [it].
Trustworthiness is owed in dealings across faiths.
Sahih al-Bukhari 2068
Sahih... اشترى طعاما من يهودي إلى أجل ورهنه درعا من حديد ...
"He bought food from a Jew on credit and pledged an iron coat of armour with him."
Buying on credit from a non-Muslim, with a pledge, is lawful.
Sahih al-Bukhari 2916
Sahih... توفي رسول الله صلى الله عليه وسلم ودرعه مرهونة عند يهودي ...
"The Messenger of Allah died while his armour was pledged with a Jew."
This was the Prophet's ﷺ practice to the end of his life.
Where the ruling is recorded
- al-Hidaya, Kitab al-Shirka. Partnership between a Muslim and a non-Muslim, and the dislike of leaving him to manage alone.
- al-Fatawa al-Hindiyya, Kitab al-Shirka. Details on partnerships with non-Muslims.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.