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The question

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?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

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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Where this answer came from
Source platform
Ftawy
Original fatwa ID
187921
Imported
Translation status
Source text, unreviewed
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