Is the 7% administrative fee on consumer loans for purchasing household necessities, provided by the employer, considered usury?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
Calling the 7% administrative fees does not change the fact that it is a loan with a stipulated interest, and this is prohibited usury (riba). If the employer had bought the devices and sold them to the employee in installments with an increase, that would have been a permissible Murabaha sale.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/49104
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- Original fatwa ID
- 49104
- Imported
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