What is the ruling on money paid by the bank as a loan to the Agency for Youth Employment Support with interest, as part of an investment project in which the young person contributes 5%, and the agency contributes 25% to be repaid to it without interest, while the remainder is from the bank to the agency with interest?
This transaction is impermissible because it constitutes cooperation in sin. Allah Almighty says: "And cooperate in righteousness and piety, but do not cooperate in sin and aggression." Dealing with the Youth Employment Support Agency and taking money from it, knowing that its funds are from usury and that the project's own funds are from usury, is impermissible because it is an approval of evil. The Prophet, peace and blessings be upon him, cursed the one who consumes usury, the one who pays it, its scribe, and its two witnesses, and he said: "They are all alike."
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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