Is it permissible to take money from a person, which is a usurious loan from which he has not benefited, and to invest it using the Mudarabah system for a variable percentage of profit, knowing that a portion of the profits will be used to repay the installments of the loan?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
There is no objection to dealing with a partner whose capital comes from a loan, where the effort and work are from you, and the capital is from him in exchange for an agreed-upon percentage of the profit. The prohibition of a forbidden loan pertains to the borrower's responsibility and does not prevent dealing with him in a permissible transaction. It is commendable to advise him to repent from the forbidden loan by feeling remorse, seeking forgiveness, and resolving not to return to it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/184483
Where this answer came from
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- Ftawy
- Original fatwa ID
- 184483
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy