Is it permissible to deposit a sum of money in Al Baraka Islamic Bank for a period of five years, then take a loan against the deposit, and repay the loan installments from the profits of the deposit?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
There is no objection to borrowing from an Islamic bank, according to regulations. The existence of an investment deposit for the customer in the same bank does not prevent this. It is permissible to mortgage deposits, whether they are on demand or investment deposits. If the bank is the mortgagee, the funds must be transferred from the current account to an investment account to prevent the mortgagee (creditor) from benefiting from the growth of the mortgaged asset, and the account holder is entitled to its profits. It is permissible to pay the installments from the deposit's profits if they are realized.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/171815
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 171815
- 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