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?
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.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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