Is it permissible for an employee to borrow from a company fund that compulsorily deducts a monthly amount from his salary, given that the fund grants loans with non-exorbitant interest, and that these deductions will inevitably be lost to him?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Social security is forbidden (). However, there is no blame on the worker for paying what he is obligated to pay, provided he does not take more than he has paid. As for borrowing from the company insured with a contract that stipulates repayment of more than the loan, this is forbidden (haram), and the contract is invalid (). A Muslim must avoid it, whether the borrowing is for building a house or for anything else.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/47765
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 47765
- 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