Is it permissible to purchase a house in installments from a non-Islamic bank, knowing that the bank does not hand the money directly to me, but rather pays it to the homeowner?
It is impermissible to purchase a house or anything else through usurious banks, because they deal in usury, which falls under aiding in sin and aggression, forbidden by Allah's saying: (And do not cooperate in sin and aggression). Furthermore, dealing with them is considered an endorsement of their sin. The obligation is to advise them to abandon usury, which entails declaring war on Allah, as stated in the verse: (But if you do not, then be informed of a war [against you] from Allah and His Messenger). It is authentically reported in Muslim that the Messenger of Allah, peace and blessings be upon him, "cursed the one who consumes usury, its payer, its scribe, and its two witnesses," and he said: "They are all equal." Whether the bank gives the money to the buyer or the seller, both constitute usury, because the bank lends the amount with usurious interest without genuine purchase or guarantee of the sold item.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 35080
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy