Is it permissible to obtain a loan from a state-owned bank, where the loan funds originate from it, knowing that the bank's managers determine that the allocated interest is in exchange for the bank's services and its administrative and engineering oversight costs?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The bank has a financial entity independent from the state, so the lending state does not benefit from the loan. And the 1% that the bank takes for banking services and engineering supervision is much less than the actual value of the service, thus the suspicion of usury is negated.
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 68287
- Imported
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