Is a development loan taken from a commercial (non-Islamic) bank in exchange for mortgaging an apartment, whereby the bank pays bills and purchases necessary materials and machinery for the project, to be repaid with interest in installments, unlawful (haram)?
If the loan necessitates repayment of the amount with an increase, then it is an usurious loan, unanimously forbidden, whether the increase is small or large, or whether it pertains to the quantity or the quality, because every loan that draws a benefit or an increase is usury (riba).
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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