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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?

1 min readAlso available in العربية

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.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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