What is the ruling on an employee taking a loan from a bank through his governmental company to build a house, given that the company bears the interest on the loan as long as the employee remains employed, and the employee bears the principal amount of the loan and its insurance costs? If the employee resigns, he must pay the remaining installments to the bank, bearing the interest or any other expenses. This is knowing that the employee is compelled and has no other option, and he does not receive a sum of money, but rather the company pays the amount directly to the homeowner or contractor. Does the sin of usury fall upon the employee or upon the party that pays the usury?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It is not permissible to enter into a usurious loan transaction to own a home, even if the employer undertakes to pay the interest. This is because the employee is the owner of the loan and the guarantor of its interest, thus being a cause or a helper in usury. This transaction is not considered a matter of necessity, as necessity is defined as the point where a responsible individual, if they do not consume what is forbidden, would perish or be close to perishing. Owning a home does not fall under this category as long as the person can find rented accommodation that does not cause unbearable hardship.
Summarized from the full answer at Ftawy · imported
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