Can a husband recover his money that he paid to his partner who claimed the project went bankrupt, or is he obligated to bear the loss? And is it permissible to take out an interest-bearing loan to pay off debts?
The owner of the capital bears the loss in a Mudarabah (profit-sharing partnership), and the worker bears nothing of it unless there was a transgression or negligence on his part. This is because the loss is a decrease in the capital, which is owned solely by the capital owner. The worker is to be believed regarding profit and loss because he is a trustee. His statement regarding loss is accepted unless his negligence or transgression is proven. In case of dispute, the Sharia court will rule. As for borrowing with interest (riba), it is among the greatest prohibitions and is not permissible except in extreme necessity. Paying off debts is not a necessity that permits usury. Islamic banks do not give interest-based loans; rather, they conduct Murabaha contracts, which are Islamically permissible.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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