What is the ruling on obtaining an Istisna' (manufacturing) agricultural loan where the amount is paid back over years with a slight increase over the principal, knowing that the lending party agreed to purchase the commodity and then disbursed a sum of money to the beneficiary?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The transaction mentioned in the question is an interest-bearing loan (riba-based loan). Therefore, it is impermissible to borrow with an increase, because the interest on a loan is forbidden by scholarly consensus, whether it is much or little. Every loan that draws a benefit is usury (riba).
Summarized from the full answer at Ftawy · imported
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