Is it permissible to repay the loan from the amount obtained from liquidating the failing project, or must the partner be given his share of the liquidation amount while the loan remains the responsibility of the borrower?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the loan is for the company, it is repaid from its funds before liquidation, and each partner takes their share. If the company's assets at the time of liquidation are equal to its debts, then none of the partners receive anything. If the debt is greater, the loss is borne by the partners according to each one's capital.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/159476
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 159476
- 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