Is borrowing from a bank to buy a house, with the amount to be repaid with a profit increase of (6.75%) in monthly installments and the salary transferred to the bank as collateral, permissible or is it considered among the forbidden loans?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The profit that the bank takes on a loan is forbidden usury (riba), whether it is a lump sum or a percentage. The Prophet, peace and blessings be upon him, cursed the one who consumes usury, the one who pays it, the one who records it, and its two witnesses, and they are all equal in sin. Allah Almighty commands the believers to give up what remains of usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/40973
Where this answer came from
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- Ftawy
- Original fatwa ID
- 40973
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy