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Is it permissible to take interest from banks if this interest will later be paid as interest on a loan taken from the same bank?

1 min readAlso available in العربية

It is not permissible to take usurious interest from the bank for personal benefit, as it is ill-gotten wealth that must be spent on general Muslim interests such as roads, hospitals, and orphanages, or given in charity to the needy and the poor. Paying it back to the bank again benefits the one who took it, which is impermissible and leads to the sin of consuming usury. What is obligatory is to withdraw the money from the usurious bank, not to borrow from it again, and to repent sincerely.

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

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