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Is it permissible to contract with an individual for the building of a villa financed by a benevolent loan (qard hasan) from a company, which is disbursed through a usurious bank and repaid to the company via the same bank, with the addition of a life insurance premium?

1 min readAlso available in العربية

Building houses through contracting is permissible if it is free from deception, fraud, and anything that is forbidden. However, it is not permissible to build a villa for the aforementioned person due to two matters: First: Assisting the person's company in obtaining a usurious loan, which falls under Allah's prohibition: "And do not cooperate in sin and aggression," even if it were a goodly loan. Second: His involvement in the forbidden life insurance, without which the loan cannot be obtained. It is not permissible to deal with the aforementioned person due to the assistance it provides him in sin and aggression.

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

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