What is the ruling on cooperative construction?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The "tripartite contract" is impermissible if an individual pays one-third, the state grants one-third, and the bank pays the final third with usurious interest. However, if the contract is free from usurious interest—meaning the individual finances half and the state grants the other half or provides it as a benevolent loan—then there is no objection, provided that the eligibility conditions set by the state are met.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/117379
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- Original fatwa ID
- 117379
- Imported
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