Is the interest resulting from a loan taken to purchase a house permissible, especially after the borrower was forced to take another loan to pay off the first one to avoid imprisonment, knowing that Allah was pleased with the Companions paying interest in similar cases?
Borrowing with usury is strictly forbidden. Whoever has fallen into it must sincerely repent to Allah and repay only the principal, for Allah Almighty says: (And if you repent, you will have your principal. Do not wrong and you will not be wronged). And Ibn Kathir said in his commentary: "Meaning, abandon what you are owed by people in excess of the principal." As for purchasing a house through an Islamic bank, it is stipulated that the bank must first purchase the house and then sell it to the client. It is not permissible for the client to sign the purchase contract before the bank takes possession of the house.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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