What is the ruling on signing on behalf of the employer for the mortgage and release of mortgage for a usurious loan and an Islamic loan that violates Sharia?
Lending and borrowing with usury (riba) are forbidden and constitute one of the major sins, for the Prophet, peace and blessings be upon him, said: "The Messenger of Allah, peace and blessings be upon him, cursed the one who consumes riba, the one who feeds it, its scribe, and its two witnesses, and he said: 'They are all equal (in sin).'" Muslims have unanimously agreed that stipulating an increase in a loan is usury.
It is forbidden to sign a mortgage if the loan is usurious or the transaction is impermissible, as this constitutes aiding in usury, based on the Almighty's saying: (And cooperate in righteousness and piety, but do not cooperate in sin and aggression). However, signing for the release of a mortgage is not objectionable, as it occurs after the transaction has concluded.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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