Back to search

Is it permissible to take a loan from an institution that supports housing loans at 0% for employees, whereby the employee pays the original amount without any increase, knowing that the institution is the one that bears the interest accrued on the loan?

1 min readAlso available in العربية

If the employer gives the employee a loan and reclaims it without any increase, then there is no harm in that. However, if the employee takes out an interest-bearing usurious loan from a bank and the employer bears the payment of all interest, such that the employee only pays the principal amount of the loan, this does not make the loan permissible. Rather, it is a usurious loan that is not permissible to enter into initially, nor is it permissible to assist in it.

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

Read the full answer on Ftawy