Is PRA Group (PRAA) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. PRA Group (PRAA) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6153 (Short-Term Business Credit Institutions)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 27 September 2026.
PRA Group is not compliant under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Fail |
| Interest-bearing debt | 30% | 507.82% | Fail |
| Cash and interest-bearing investments | 30% | 23.49% | Pass |
| Prohibited income | 5% | 0.96% | Pass |
| Not just cash and debts | 90% | 95.21% | Review |
Key Findings & Observations
- Its main business is conventional banking, lending or insurance (SEC industry code 6153 (Short-Term Business Credit Institutions)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1).Source: Business check
- Interest-bearing debt is 507.8% of the company’s 36-month average market value. AAOIFI’s limit is under 30% (Shari'ah Standard 21, 3/4/2).Source: AAOIFI Shari'ah Standard 21
- The not just cash and debts test couldn’t be settled: The figures give 2.0% and 95.2%, on either side of the limit.Source: AAOIFI Shari'ah Standard 21
Get an email when verdicts change
One email a month. No spam, unsubscribe any time.
Frequently Asked Questions about PRA Group, Inc. (PRAA)
Is PRA Group (PRAA) stock halal?▾
No. PRA Group (PRAA) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6153 (Short-Term Business Credit Institutions)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 27 September 2026.
What is PRA Group's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. PRA Group's ratio is about 507.8%.
How much dividend purification is required for PRA Group (PRAA) stock?▾
PRA Group does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does PRA Group operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. PRA Group's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
Other Halal & Shariah-compliant Financial Services Stocks
Explore other screened equities in the Financial Services sector.
Track your entire portfolio for Halal / Islamic compliance
Check whether your stocks, ETFs, and 401(k) holdings comply with AAOIFI Shari’ah Standard 21. Save stocks and keep every holding’s verdict in one place.