Is it permissible to work with a Takaful insurance policy for an end-of-service bonus, where its premiums are deducted from the salary, and it grants a loan with it as collateral at a 7% interest rate, repaid by deduction from the salary?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
A loan with an insurance policy as collateral, at an interest rate of 7%, is considered usury (riba) because profit and increase are not permissible in a loan. Insurance, even if called Takaful (Islamic cooperative insurance), is not permissible if it invests the subscribers' funds in usurious loans or prohibited matters.
Summarized from the full answer at Ftawy · imported
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- Ftawy
- Original fatwa ID
- 170798
- Imported
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