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Is the borrower absolved of debt if the insurance company pays the remaining loan balance to the bank after his return to his country?

1 min readAlso available in العربية

Whoever takes a loan is obligated to repay it, and it is unlawful for him to evade or procrastinate in its performance, due to the Prophet, peace and blessings be upon him, saying: "The procrastination of a rich man is injustice," and his saying: "On the hand is what it took until it returns it." It is obligatory to repay the loan, unless it is usurious, in which case only the principal must be repaid. As for insurance: if it is cooperative, it is permissible to benefit from it according to its regulations; but if it is commercial, you may not benefit from it beyond the amount of premiums you have paid.

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

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