Is it permissible to take out another loan from the Islamic bank for an amount greater than the cost of the commodity in order to pay off the first loan?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Informing the bank of an unreal price in a Murabaha sale is impermissible, as it involves deceiving the bank and constitutes usury (riba). This is because any amount exceeding the actual price of the land is considered a loan to the client, and the bank earns profit on it, thus becoming prohibited usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/149173
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 149173
- 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