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)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Praise be to Allah, and prayers and peace be upon the Messenger of Allah. Borrowing from a usurious bank with interest is unlawful () in . 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.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/81016
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 81016
- 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