Is a bank loan that stipulates the repayment of two million for one million borrowed after one year—in exchange for the bank retaining the borrower's one million for one year—considered usury or not?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This loan is usury itself and is forbidden by the consensus of Muslims, because the purpose of a loan is to show kindness, and "every loan that draws a benefit is usury." The bank lent one million riyals and stipulated that another million be given to it, to remain with it for a year for its benefit. This condition is void. Therefore, the borrower must return only the principal, which is the one million riyals he borrowed, in accordance with the Almighty's saying: (And if you repent, you shall have your principal sums; you shall not wrong, nor be wronged).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/19222
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- Ftawy
- Original fatwa ID
- 19222
- 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.
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- Read the full answer on Ftawy