Is it permissible to benefit from a loan from a Riba-based bank for investment projects for the unemployed, knowing that the bank sets a 5% interest rate and does not pay money directly but rather undertakes to purchase the project's necessities?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The matter inquired about by the questioner falls into one of two scenarios:
The first: That the bank purchases and owns the equipment, then sells it to the client at an increased price. This is permissible. However, no usurious bank does this, because usurious banks deal with usurious loans. Therefore, it is not permissible to enter into this transaction because it is a loan with interest.
The second: That the bank pays the loan directly to the seller. This is also forbidden because it is a usurious loan.
Accordingly, the aforementioned transaction is not a .
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/76189
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- Ftawy
- Original fatwa ID
- 76189
- Imported
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