Is it permissible to take money from a government company designated for projects, to be paid back in installments, knowing that the purpose is not a project but rather to complete the building of a house?
The reference for taking a loan is the condition set by the lending party. If it stipulates that the loan is for a commercial project, then it is not permissible to take it for anything else, such as building a house, because the Prophet, peace and blessings be upon him, said: "Muslims are bound by their conditions, except a condition that forbids what is lawful or permits what is unlawful." Conditions in contracts are valid and binding as long as they do not contravene the Sharia.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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