Is it permissible to convert an interest-bearing loan for purchasing a house into Islamic financing through partnership with a financing company that claims adherence to Sharia principles, knowing that the company's dealings with conventional banks are still unclear?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
Consuming usury and assisting in it are forbidden and constitute grave sins. A loan that stipulates an increase is unanimously considered forbidden. Ignorance of the Sharia ruling may lift the sin. It is not obligatory to sell the house to repay the usurious loan because the loan contract is not invalidated by the presence of a condition that benefits the lender. There is a concern that the company's transaction might be a ruse for usury.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/19220
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- Ftawy
- Original fatwa ID
- 19220
- Imported
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- Source text, unreviewed
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