Is taking out a bank loan to pay off debts and start a business permissible or forbidden?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
There is no objection to borrowing for a permissible project if the loan is non-usurious, while being cautious not to take debt lightly, as the Prophet, peace and blessings be upon him, used to seek refuge from it because it leads to worry, lying, and breaking promises. Therefore, one should not undertake it except out of dire necessity, coupled with the ability and determination to repay it. As for usurious loans, they are forbidden, and Allah has threatened those who engage in them with war; there is absolutely no good in them.
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 185902
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