Is purchasing a residential unit through the National Housing Project in Egypt, via real estate financing from a bank, where the price of the unit is paid to the bank—which has paid the full price to the seller—with installments paid to the bank at a fixed annual interest rate of 7%, and with a penalty clause that includes paying the value of the subsidy and its cost in case of delayed payment, considered permissible or forbidden?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The answer is summarized as follows: The mentioned transaction is not a buy-sell agreement between the second party ("the buyer") and the third party ("the financier"). If the third party imposes interest in exchange for the loan granted to the second party, this is usury and is impermissible. Furthermore, unclear clauses do not change the reality of the transaction being usurious if the bank recovers what it paid with interest.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/152415
- Source platform
- Ftawy
- Original fatwa ID
- 152415
- Imported
- Translation status
- Source text, unreviewed
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- Read the full answer on Ftawy