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Is bank financing for company employees compliant with Islamic Sharia and not considered usurious loans?

1 min readAlso available in العربية

It is permissible for the bank to grant loans to employees if they are interest-free, or if the transaction is based on murabahah, where the bank purchases a commodity and sells it to the employee for a known profit. Any other transaction must be clarified before a ruling can be made on it.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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