Back to search

We are a group of brothers who invested in a project in Algeria. We contributed 60% of the capital, and the rest was a loan from a usurious bank. We repaid the loan, then learned of the prohibition of dealing with usurious banks. We expanded the project with our own funds, but were forced to resort to the same bank again after the Islamic bank refused to finance us. What should we do to make our project permissible (halal)?

1 min readAlso available in العربية

Praise be to Allah, and prayers and peace be upon the Messenger of Allah. Borrowing from a usurious bank with interest is unlawful (haram) in Sharia. Whoever commits this act while knowing it is forbidden must repent and not return to it. As for someone who borrowed while ignorant of the ruling, there is no sin upon him due to the excuse of ignorance. However, one who was negligent in asking is not excused. Whether the borrower was ignorant or knowledgeable, if the loan was invested in a permissible endeavor, then its profits are permissible because money is not earmarked, and the sin of usury falls upon the borrower's conscience.

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

Read the full answer on Ftawy