What is the ruling of Sharia on purchasing a factory when half of its financing is from a bank with 7.5% interest?
The duty was not to enter into the forbidden usurious transaction, for usury is one of the grave sins, and Allah has cursed its doer. If it has occurred, then the duty is to repent to Allah for giving and borrowing with usury. If the bank agrees to take only its principal and you are able to repay it without severe hardship, then do so. Otherwise, hold onto your factory and pay the installments, and repent to Allah, for "the matter of usury is grave in the sight of Allah," as He Almighty said: (O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged).
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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