Back to search

Is it permissible for an employee of a bank to take out a personal loan from the bank without interest, and then enter into a partnership with me with this money in my trade, on the condition that I bear the profits and he bears the interest?

1 min readAlso available in العربية

Firstly: Usurious financing that is repaid with a 5% interest is unanimously forbidden, because it is a loan that draws benefit, and that is usury (riba).

Secondly: It is permissible for an employee at the bank to take a benevolent loan (without interest) and share it with you, and the profit will be according to the agreement. As for the loss, it will be proportional to the capital of each of you. If the capital is from him and the work is from you, then it is a Mudarabah (profit-sharing partnership), and the profit will be as you agree upon, while the loss will be borne by the owner of the capital.

Thirdly: It is not permissible to work in usurious banks, and whoever works in them must repent and leave the job.

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

Read the full answer on Ftawy